In a strategic move, Shell Plc has announced the sale of its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), for a staggering $2.4 billion. The decision, revealed in a statement on Tuesday, emphasizes the preservation of SPDC’s operational capabilities under new ownership.
The consortium set to acquire SPDC is Renaissance, comprising four Nigerian exploration and production companies alongside an international energy group. The deal, however, remains contingent on approvals from the Federal Government of Nigeria and other necessary conditions.
The statement affirms that SPDC’s staff will seamlessly transition to the new ownership structure. Shell will retain a role in supporting the management of SPDC Joint Venture facilities, crucial in supplying a significant portion of feed gas to Nigeria LNG (NLNG).
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented on the significance of the agreement, stating, “This marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta.” She highlighted the company’s commitment to streamlining its portfolio, focusing on Deepwater and Integrated Gas positions in Nigeria.
The statement also acknowledged the historical contribution of SPDC to Nigeria’s energy sector, noting that the company would enter its next chapter under the ownership of an experienced and ambitious Nigerian-led consortium.
As part of the unincorporated joint venture, SPDC JV comprises SPDC Ltd (30%), Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%). The move aligns with Shell’s vision for a positive investment outlook in Nigeria’s energy sector, strategically supporting the country’s growing energy needs and export ambitions in line with their broader strategy.
