Shell has finalized an agreement to sell its Nigerian onshore oil and gas operations to a local consortium of five companies, known as Renaissance, for a total of up to $2.4 billion. This decision marks a significant strategic move for the company as it seeks to exit the increasingly challenging operating environment in the Niger Delta region, while retaining a presence in other areas of the country.
The announcement was made by Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director, in a statement issued on January 16. He underscored the critical nature of the transaction, which reflects Shell’s ongoing commitment to optimizing its global portfolio by focusing on assets in more stable regions.
The deal involves the sale of Shell Petroleum Development Company of Nigeria Limited (SPDC), with an upfront payment of $1.3 billion, and an additional $1.1 billion contingent upon meeting certain conditions at the transaction’s completion, bringing the total value of the agreement to $2.4 billion.
The local consortium, which calls itself Renaissance, is made up of the following companies: ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin. This deal signals a significant step in the ongoing trend of local players increasingly taking a larger role in Nigeria’s oil and gas sector.
This divestiture aligns with Shell’s broader strategy of streamlining its operations and focusing on more lucrative or sustainable projects globally. Despite exiting the onshore oil sector in Nigeria, Shell plans to retain other business interests in the country, ensuring that it remains an important player in the Nigerian energy industry.
