Shell, a key player in Nigeria’s oil and gas sector since the 1930s, has taken a significant step by agreeing to sell its onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited. This marks the end of an 86-year-long journey in Nigeria for the British energy giant.
The proposed sale involves transferring its onshore business to Renaissance, a consortium comprising four Nigerian exploration and production companies and an international energy group. However, the transaction’s completion is contingent upon approvals from the Federal Government of Nigeria and meeting other specified conditions, as outlined in the company’s statement.
The strategic move aims to streamline Shell’s portfolio and aligns with the company’s earlier announcement to exit onshore oil production in the Niger Delta. The sale is designed to safeguard the full operational capabilities of The Shell Petroleum Development Company.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, emphasized the significance of this agreement, marking a pivotal moment for both Shell and SPDC. Yujnovich expressed optimism for Shell’s continued positive contribution to Nigeria’s energy sector, focusing on deepwater and integrated gas positions aligned with the company’s strategy.
Having played a pioneering role in Nigeria’s energy sector for decades, SPDC is poised to enter its next chapter under the ownership of an experienced Nigerian-led consortium. Shell remains committed to supporting Nigeria’s energy needs and export aspirations, anticipating a bright future in the country’s energy landscape.
