Following nearly a century of operations, British energy giant Shell has decided to sell its Nigerian onshore oil and gas division to a group of five, primarily local businesses, for up to $2.4 billion.
Since its establishment in the West African nation in the 1930s, Shell has faced numerous challenges related to theft, sabotage, and operational problems that have resulted in hundreds of oil leaks at its onshore installations. These have led to expensive repairs and public litigation.
Since 2021, it has attempted to sell its oil and gas company in Nigeria; however, it will continue to operate in the country’s more profitable and trouble-free offshore market.
According to a statement from Shell, the Shell Petroleum Development Company of Nigeria Limited (SPDC) would be sold for a consideration of $1.3 billion. At completion, the buyers will also be required to pay up to an extra $1.1 billion for prior receivables.
Renaissance is made up of the local oil exploration and production firms ND Western, Aradel Energy, First E&P, and Waltersmith as well as the trading and investment firm Petrolin, headquartered in Switzerland.
18 onshore and shallow water mining leases are held by the SPDC joint venture, in which Shell’s SPDC Limited operates and owns a 30% interest.
SPDC is going to be the operator.
The Nigerian National Petroleum Corporation (NNPC) of the state, which owns 55% of the venture, TotalEnergies, which owns 10%, and Eni, an Italian company, which owns 5%, are the other partners.
In addition to its activities and holdings in many deep offshore areas, Shell maintains a liquefied natural gas plant as well as other assets in Nigeria.
