Oil giant Shell has announced a deal to offload its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium consisting of four domestic exploration and production firms and an international energy group.
The sale, disclosed in a statement on Shell’s website on Tuesday, is contingent on approvals from the Federal Government of Nigeria and other stipulated conditions. Shell outlined its commitment to preserving SPDC’s operational capabilities for the joint venture’s benefit, ensuring a seamless transition.
The statement reads, “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).”
Despite the change in ownership, Shell assured that SPDC’s staff would remain employed during the transition. The company emphasized that it would continue supporting the management of SPDC JV facilities, crucial for supplying a significant portion of the feed gas to Nigeria LNG (NLNG) to optimize the country’s value from NLNG.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, marked the agreement as a pivotal moment for Shell in Nigeria, aligning with the previously announced intention to exit onshore oil production in the Niger Delta. The move is part of Shell’s strategy to simplify its portfolio and concentrate future disciplined investments in Nigeria on Deepwater and Integrated Gas positions.
Yujnovich stated, “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.”
She expressed Shell’s optimism about Nigeria’s energy sector, reiterating a commitment to supporting the country’s growing energy needs and export ambitions in line with their strategic focus. The deal signifies a strategic shift for Shell in Nigeria and paves the way for SPDC to embark on a new chapter under the ownership of a locally-led consortium.