Royal Dutch and British energy major, Shell, has agreed to sell its Nigerian onshore oil and gas subsidiary in Nigeria to a consortium of five mostly local companies for up to $2.4 billion, after nearly a century of operations there.
Active in the West African
country since the 1930s, Shell has struggled for years with hundreds of oil
spills at its onshore operations as a result of theft, sabotage and operational
issues that led to costly repairs and high-profile lawsuits.
It has sought to sell its
Nigerian oil and gas business since 2021, but will remain active in Nigeria's more
lucrative and less problematic offshore sector.
Shell will sell its Nigeria
arm, The Shell Petroleum Development Company of Nigeria Limited (SPDC) for a
consideration of $1.3 billion, it said in a statement, while the buyers will
make an additional payment of up to $1.1 billion relating to prior receivables
at completion.
Renaissance comprises ND
Western, Aradel Energy, First E&P, Waltersmith, all local oil exploration
and production companies, and Petrolin, a Swiss-based trading and investment
company.
Shell's SPDC Limited operates
and has a 30per cent stake in the SPDC joint venture that holds 18 onshore and
shallow water mining leases.
SPDC will remain the operator.
Other partners in the joint
venture (JV) are the state's Nigerian National Petroleum Corporation (NNPC),
which holds 55per cent, TotalEnergies (TTEF.PA), with 10per cent and Italy's
Eni (ENI.MI) with five per cent.
Apart from its operations and
stakes in several fields deep offshore, Shell also still has a liquefied
natural gas plant and other assets in Nigeria.
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