Shell has announced that it will sell its Nigerian subsidiary The Shell Petroleum Development Co. of Nigeria Limited (SPDC) to Renaissance.
Renaissance is a consortium of five companies including four exploration and production companies based in Nigeria and an international energy group.
Shell will complete the transaction once approvals from the Federal Government of Nigeria and other conditions come through.
“The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership,” the company noted in a press release. “This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.”
Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.
“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,” said Zoë Yujnovich, Shell’s integrated gas and upstream director.
“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,” said Yujnovich.
The consideration payable to Shell as part of the transaction is $1.3 billion.
