Shell to sell its Nigerian onshore business for $2.4bn after 86 years of operation

After agreeing to sell its Nigerian onshore subsidiary, Shell Plc is set to end its operations in Nigeria after 86 years.

In a statement on Tuesday, January 16, 2024, the British energy giant said it has “Reached an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited.”

The company which pioneered Nigeria’s oil and gas business in the 1930s is ready to sell its onshore business to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.

But the completion of the transaction according to the statement on the company’s website is subject to approvals by the Federal Government of Nigeria and other conditions.

It added that the transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership.

“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” Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director said.

“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.”

Shell has been active in Nigeria since 1937.