Shell Plc has announced an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies. The consortium includes four exploration and production companies based in Nigeria and an international energy group. The sale is valued at $2.4 billion.
The completion of the transaction is contingent upon approvals from the Federal Government of Nigeria and meeting other specified conditions. Shell emphasized that the sale has been structured to safeguard the full range of SPDC’s operating capabilities, encompassing technical expertise, management systems, and processes implemented on behalf of all companies in the SPDC Joint Venture (SPDC JV).
As part of the transition to new ownership, SPDC’s staff will continue to be employed by the company. Shell intends to retain a role in supporting the management of SPDC Joint Venture facilities supplying a significant portion of feed gas to Nigeria LNG (NLNG) after the completion of the transaction.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, stated, “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.”
The statement acknowledged the significance of this development for SPDC, which has played a pioneering role in Nigeria’s energy sector for decades. The transaction signifies SPDC’s transition to a new chapter under the ownership of an experienced and ambitious Nigerian-led consortium.
The SPDC JV is an unincorporated joint venture involving SPDC Ltd (30%), the Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%). Shell expressed optimism about Nigeria’s energy sector, affirming its commitment to supporting the country’s energy needs and export ambitions in line with its strategic focus.