A noticeable divide has emerged within the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) regarding the ongoing sale of Shell Nigeria’s onshore assets to the Renaissance Consortium. While PENGASSAN has raised concerns over the sale process and the credentials of the buyers, many Shell employees are more focused on the future terms of their employment under the new ownership.
Shell Nigeria has reassured its staff, stating that employees will retain their positions during the transition to new ownership, with no immediate changes to their employment status. Despite these reassurances, there is growing unease among approximately 2,425 direct employees and numerous contract workers, who are primarily concerned with the terms of their continued engagement.
Shell’s decision to sell its onshore assets in Nigeria comes after an agreement with the Renaissance Consortium, a group of five Nigerian-based companies, for a transaction worth up to $2.4 billion. The sale requires approval from the Nigerian government before it can be finalized.
PENGASSAN has expressed reservations about the transaction, particularly regarding the lack of transparency about the Renaissance Consortium’s ability to manage Shell’s vast operations. In a statement, the union criticized the buyers, labeling them as unproven entities with no demonstrated track record in managing large-scale oil and gas operations. PENGASSAN has also voiced strong objections to certain employment conditions proposed under the deal.
However, sources within Shell have clarified that most staff members are not opposed to the sale itself. The employees have long been aware of Shell’s plans to divest its onshore operations, and many are familiar with key individuals within the Renaissance Consortium. Notable figures in the consortium, such as Tony Attah, Bayo Ojulari, and Demola Adeyemi-Bero, have extensive experience in leadership roles at Shell, and are believed to be well-versed in the company’s corporate values, including its commitment to employee welfare.
These familiar figures are seen by many staff members as capable of replicating Shell’s positive practices under the new ownership. However, employees continue to seek clearer communication about how their roles and conditions will evolve once the transition takes place.
Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum, has reassured the public that the government is supportive of the sale, as long as it aligns with business regulations and does not disrupt Nigeria’s oil and gas industry. He highlighted the government’s commitment to fostering a business-friendly environment during discussions at the World Economic Forum in Davos.
The Renaissance Consortium, which includes ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, a Swiss-based firm, is poised to take over Shell’s onshore operations. The consortium has committed to addressing the operational challenges associated with oil theft, sabotage, and environmental damage, issues that have long plagued Shell’s operations in Nigeria’s Niger Delta region.
This divestment is part of Shell’s broader strategy to focus on more profitable, less controversial offshore ventures. The company’s move away from onshore oil production in Nigeria follows similar actions by other Western energy giants such as ExxonMobil, Eni, and Equinor, who have sold or are in the process of selling their Nigerian assets in recent years.
Shell’s exit from onshore operations is a significant moment in Nigeria’s oil industry, as the company, which has operated in the country since the 1930s, transitions to more profitable and lower-risk operations. As part of the deal, Shell will sell the Shell Petroleum Development Company (SPDC) to Renaissance for $1.3 billion, with an additional payment of up to $1.1 billion tied to previous receivables.
The sale also comes with significant challenges, including Shell’s responsibility to address environmental issues stemming from past oil spills in the Niger Delta. The company has agreed to transfer these responsibilities to Renaissance as part of the deal. Meanwhile, the Nigerian government remains hopeful that the transition will bring new opportunities and investments into the oil sector, particularly in local content development.
