Shell has officially announced a strategic move to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance.
This consortium is composed of four Nigerian exploration and production companies along with an international energy group.
In a statement released on Tuesday, Shell outlined that the completion of this transaction is contingent upon approvals from the Federal Government of Nigeria and other stipulated conditions.
The company emphasizes that the transaction structure is designed to safeguard SPDC’s operational capabilities, ensuring continuity in technical expertise, management systems, and processes on behalf of all companies in the SPDC Joint Venture (SPDC JV).
It’s worth noting that despite the change in ownership, SPDC’s staff will remain employed during this transition. Shell aims to retain its responsibilities in supporting the management of SPDC JV facilities, crucial for supplying a significant portion of feed gas to Nigeria LNG (NLNG) to maximize the country’s value from NLNG.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, expressed the significance of this agreement for Shell in Nigeria. The move aligns with Shell’s previously announced intention to exit onshore oil production in the Niger Delta.
The company aims to streamline its portfolio, focusing on future disciplined investments in Nigeria on Deepwater and Integrated Gas positions.
Yujnovich also highlighted the positive investment outlook for Shell in Nigeria, emphasizing continued support for the country’s energy needs and export ambitions in alignment with the company’s strategic objectives.
