Shell, a prominent international oil company, has agreed to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five Nigerian companies and an international energy group, for a sum of up to $2.4 billion. The announcement was made in a statement on Tuesday, signifying the conclusion of the British oil giant’s core operations in Nigeria, which began in 1979.
However, the completion of the transaction is contingent upon approvals from the Federal Government of Nigeria, holding a 55 percent stake, and other requisite conditions. Shell emphasized that the transaction aims to maintain SPDC’s operational capabilities, encompassing technical expertise, management systems, and processes that benefit all companies in the SPDC Joint Venture (SPDC JV).
The statement clarified that SPDC’s workforce will remain employed during the transition to new ownership. Furthermore, Shell will retain a role in supporting the management of SPDC JV facilities, crucial for supplying a significant portion of feed gas to Nigeria LNG and NLNG, contributing to Nigeria’s optimal value from NLNG.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented on the company’s future plans, stating a focus on investments in deepwater and integrated gas operations. Yujnovich emphasized the significance of the agreement in aligning with Shell’s previous intent to exit onshore oil production in the Niger Delta, streamlining the portfolio, and concentrating disciplined investment in Nigeria on deepwater and integrated gas sectors.
Yujnovich also expressed confidence in Nigeria’s energy sector, envisioning a positive investment outlook. Shell commits to supporting the country’s growing energy needs and export ambitions in line with its strategic goals.
The SPDC JV is an unincorporated joint venture consisting of SPDC Ltd (30 percent), the government-owned Nigerian National Petroleum Corporation (55 percent), Total Exploration and Production Nigeria Ltd (10 percent), and Nigeria Agip Oil Company Ltd (5 percent), as reported by DAILY POST.