Shell agrees to sell Nigerian onshore subsidiary
- News Agency
- Jan 20, 2024
- 1 min read
Shell has entered into an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies, including four Nigerian exploration and production firms and an international energy group. The completion of the transaction is contingent upon approvals from the Federal Government of Nigeria and other conditions.
The sale is designed to maintain the full range of SPDC's operating capabilities, including technical expertise, management systems, and processes for the benefit of the joint venture. SPDC's staff will continue their employment as the company transitions to new ownership. Post-completion, Shell will retain a role in supporting the management of SPDC JV facilities, supplying a significant portion of feed gas to Nigeria LNG.
Shell's decision aligns with its strategy to exit onshore oil production in the Niger Delta, simplifying its portfolio and concentrating future investments in Nigeria on Deepwater and Integrated Gas positions. Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized the bright future for Shell in Nigeria and continued support for the country’s energy needs and export ambitions within the framework of their strategic focus.
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%).
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