Shell has announced a landmark agreement to divest its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium consisting of four indigenous exploration and production companies in Nigeria and an international energy group. The transaction is contingent on approvals from the Federal Government of Nigeria and other requisite conditions, as stated in a Tuesday press release on Shell’s website.

The sale has been strategically structured to maintain SPDC’s operational capabilities for the benefit of the joint venture, ensuring the preservation of technical expertise, management systems, and processes that SPDC currently implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV). Shell emphasizes that SPDC’s workforce will remain employed during the transition to new ownership.

Shell underscores its commitment to supporting the management of SPDC JV facilities, which play a crucial role in supplying a significant portion of feed gas to Nigeria LNG (NLNG). This collaboration aims to maximize the value derived from NLNG, contributing to Nigeria’s energy objectives.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, remarked, “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. We are simplifying our portfolio and concentrating future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions.”

Yujnovich expressed optimism about Nigeria’s energy sector, stating, “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.” This move reflects Shell’s strategic vision and commitment to focused investments, highlighting its ongoing role in the Nigerian energy landscape.