Shell Plc has confirmed that it has entered into an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium consisting of four Nigerian-based exploration and production companies and an international energy group.
The transaction is valued at $2.4 billion, pending approvals from the Federal Government of Nigeria and other necessary conditions.
In an official statement released on Tuesday, Shell emphasized that the completion of the sale is contingent on approvals from relevant authorities.
The transaction has been strategically structured to safeguard the full spectrum of SPDC’s operational capabilities following the change in ownership.
This includes preserving technical expertise, management systems, and processes implemented by SPDC on behalf of all companies in the SPDC Joint Venture (SPDC JV).
As part of the transition, SPDC’s staff will continue to be employed by the company. Shell highlighted its commitment to supporting the management of SPDC Joint Venture facilities that supply a significant portion of the feed gas to Nigeria LNG (NLNG) after the completion of the deal.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, 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.”
The statement underscored the significance of this development for SPDC, characterizing it as a pivotal moment for the company that has played a pioneering role in Nigeria’s energy sector for decades. Following the completion of the transaction, SPDC will enter its next phase under the ownership of a capable and ambitious Nigerian-led consortium.
Shell expressed optimism about the future of its operations in Nigeria, reaffirming its commitment to supporting the country’s energy needs and export ambitions in alignment with its strategic objectives.
The SPDC JV comprises SPDC Ltd (30%), the Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
