Shell Plc, in a statement on its website on
Tuesday, disclosed that it has reached an agreement to sell its Nigerian
onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited
(SPDC), to Renaissance.
Renaissance is a consortium of five firms
made up of four exploration and production companies based in Nigeria and also
an international energy group.
However, Shell noted “Completion of the
transaction is subject to approvals by the Federal Government of Nigeria and
other conditions.”
The statement added, “Transaction will
preserve SPDC’s operating capabilities for the benefit of a joint venture. The
transaction has been designed to preserve the full range of SPDC’s operating
capabilities following the change of ownership. This includes the technical
expertise, management systems, and processes that SPDC implements on behalf of
all the companies in the SPDC Joint Venture (SPDC JV)”.
It, however, said, “SPDC’s staff will
continue to be employed by the company as it transitions to new 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,” Shell’s Integrated Gas and Upstream Director Zoë
Yujnovich 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.”