In a statement released on Tuesday, Shell, a leading international oil company, has announced its agreement to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance—a consortium consisting of five Nigerian companies and an international energy group—for up to $2.4 billion. The move signifies the conclusion of the British oil giant’s core operations in Nigeria, initiated in 1979.
However, completion of the transaction is contingent upon approvals from the Federal Government of Nigeria, which holds a 55% stake, and other requisite conditions.
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Shell Details More on the transaction
Shell emphasized that the transaction has been structured to safeguard SPDC’s full operational capabilities post-change of ownership. This includes retaining technical expertise, management systems, and processes implemented by SPDC on behalf of all companies in the SPDC Joint Venture (SPDC JV).
The company clarified that SPDC’s existing staff will continue employment during the transition to new ownership. Additionally, Shell will maintain a role in supporting the management of SPDC JV facilities, which contribute a significant portion of feed gas to Nigeria LNG and NLNG, aiming to maximize Nigeria’s value from NLNG.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, outlined the company’s future strategy, focusing on investments in deepwater and integrated gas operations.
Yujnovich stated, “This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio, and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions.”
She emphasized that Shell remains optimistic about Nigeria’s energy sector, pledging continued support for the country’s energy needs and export ambitions in alignment with the company’s strategy.
The SPDC JV is an unincorporated joint venture consisting of SPDC Ltd (30%), the Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
