ICYMI: Shell Set To Leave Nigeria, Put Nigerian Onshore Oil Business For Sale(Check Price Here)

Shell is set to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC) for $2.4 billion to Renaissance.

Renaissance is a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.

It was formed of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

Shell in a statement on Tuesday said it will sell SPDC for a consideration of $1.3 billion, while the buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.

Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.

ICYMI: Shell Set To Leave Nigeria, Put Nigerian Onshore Oil Business For Sale(Check Price Here)

The statement said that the transaction would preserve SPDC’s operating capabilities for the benefit of the joint venture.

Shell’s Integrated Gas and Upstream Director, said Zoë Yujnovich: “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.”

“The SPDC JV is an unincorporated joint venture comprised of SPDC Ltd (30%), the government-owned Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%) and Nigeria Agip Oil Company Ltd (5%).”