Leading global oil giant Shell has agreed to sell Shell Petroleum Development Company of Nigeria Limited, SPDC, its onshore Nigerian subsidiary, to Renaissance, an international energy organization and a partnership of five Nigerian companies, for as much as $2.4 billion.
This was revealed by the business in a statement on Tuesday.
Years after its founding in 1979, the British oil giant’s main business in Nigeria would come to an end as a result of the event.
The Federal Government of Nigeria, which owns a fifty-five percent stake in the deal, must approve it, among other requirements, according to the business.
Shell clarified the implications of the development by stating that the acquisition was intended to maintain SPDC’s entire operational range after the ownership transition. These consist of the management methods, procedures, and technical know-how that SPDC employs on behalf of each and every one of the participating companies in the SPDC Joint Venture (SPDC JV).
The statement also made it clear that SPDC employees will remain with the company after it changes ownership.
In order to help Nigeria get the most value from NLNG, the business stated that it will continue to assist the management of SPDC JV facilities that provide a significant amount of the feed gas to Nigeria LNG and NLNG.
Speaking on the business’s future course of action, Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, stated that the company will concentrate investment on deepwater and integrated gas operations.
“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.
“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.”
Platinum Times gathered the SPDC JV is an unincorporated joint venture comprised of SPDC Ltd (30 per cent), the government-owned Nigerian National Petroleum Corporation (55 per cent), Total Exploration and Production Nigeria Ltd (10 per cent) and Nigeria Agip Oil Company Ltd (5 per cent).