Shell To Sell $2.4bn Nigeria Onshore Assets

British energy giant Shell has reached an agreement to sell its onshore oil and gas subsidiary in Nigeria, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium of five mostly local companies for up to $2.4 billion.

This move marks the end of Shell’s onshore operations in Nigeria after nearly a century.

Shell, active in Nigeria since the 1930s, faced challenges such as oil spills due to theft, sabotage, and operational issues, leading to costly repairs and legal battles. The sale aims to shift focus to Nigeria’s more lucrative offshore sector.

The consortium named Renaissance includes local companies ND Western, Aradel Energy, First E&P, Waltersmith, and Swiss-based trading firm Petrolin. Shell will sell SPDC for $1.3 billion, with an additional payment of up to $1.1 billion related to prior receivables.

SPDC, retaining its operator role, holds a 30% stake in the joint venture with partners Nigerian National Petroleum Corporation (NNPC), TotalEnergies, and Eni. Shell will maintain its presence in Nigeria through offshore operations, a liquefied natural gas plant, and other assets.

This strategic move aligns with Shell’s efforts to streamline its portfolio and underscores the growing role of local players in Nigeria’s energy sector.
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