Shell Plc announced it had “reached an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited.”
Renaissance, a coalition of five firms including four Nigerian exploration and production companies and an international energy organisation, would pay $2.4 billion for the SPDC.
However, Shell stated that the sale is subject to clearance by the Federal Government of Nigeria, among other criteria.
The development will mark the end of the British oil giant’s primary activity in Nigeria, which began in 1979.
According to a statement posted on the company’s website on Tuesday, the transaction is intended to preserve the entire spectrum of SPDC’s operating capabilities following the change of ownership.
According to the statement:
“includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV)”.
SPDC’s employees will remain employed as the firm transitions to new ownership, it said.
The statement released by Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said:
“Following completion, Shell will retain a role in supporting the management of SPDC Joint Venture facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG,” the statement read partly.
“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.
“It is a significant moment for SPDC, whose people have built it into a high-quality business over many years. Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.
“Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy.”
cc: Punch Ng
