“Agreed to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited,” announced Shell Plc.
Renaissance, a collection of five businesses that includes an international energy organization and four Nigerian exploration and production companies, will purchase the SPDC for $2.4 billion.
Shell stated that additional requirements and Federal Government of Nigeria permits must be met before the deal can be finalized.
The transaction has been structured to maintain SPDC’s whole operational range after the ownership transition, the company revealed in a statement on its website on Tuesday.
The technical know-how, management systems, and procedures that SPDC executes on behalf of all the companies in the SPDC Joint Venture (SPDC JV) are included in this, according to the statement.
The statement further stated that even when SPDC changes ownership, its employees will still be working for the company.
“Following completion, Shell will retain a role in supporting the management of SPDC Joint Venture facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG,” the statement read partly.
“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 quoted Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, as having said.
The statement added, “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%).
