Shell Plc Agrees to Sell Off Its Nigerian Onshore Oil Business for $2.4 Billion

Shell Plc has disclosed that it will sell its Nigerian onshore oil and its subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium of five companies known as Renaissance for a total of $2.4 billion, which will mark the end of Shell’s long operations in Nigeria.

The company said it plans to divest the SPDC for $1.3 billion, with additional payments of up to $1.1 billion. This was according to the official statement released by the company.

Shell Petroleum Development Company of Nigeria Limited (SPDC) operates a 30% stake in the SPDC joint venture, holding 18 onshore and shallow water mining leases and will continue to be the operator. Other joint venture partners include the Nigerian National Petroleum Corporation (55%), TotalEnergies (10%), and Italy’s Eni (5%).

It's said that Shell still retained its liquefied natural gas plant and other assets in Nigeria following the exit of its onshore operations.

The company announced the deal on Tuesday and, if successful, will end Shell's operations.

The move the company took aligns with the company's goal of shifting its focus to deep water and integrated gas projects in Nigeria.

In the statement, Shell said

• This agreement marks an important milestone for Shell in Nigeria,” says Zoe Yujnovich, integrated gas and upstream director. “It simplifies our portfolio and focuses future disciplined investment in Nigeria on our deepwater and integrated gas positions.

The buyer, Renaissance, is a consortium comprising ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, as reported.

Shell has been operating in Nigeria since the 1930s and has faced many challenges since it started operations in Nigeria's oil regions, including oil spillage due to crude oil theft, sabotage, and operational issues.