Shell, a prominent international oil company, has reached an agreement to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five Nigerian companies and an international energy group, for a potential sum of $2.4 billion. The announcement was made in a statement released by the company on Tuesday.

This move signifies the end of Shell’s core operations in Nigeria, which began in 1979. However, the completion of the transaction is contingent upon approvals from the Federal Government of Nigeria, which holds a 55% stake, as well as other conditions. Shell emphasized that the transaction has been structured to ensure the preservation of SPDC’s operational capabilities, including technical expertise, management systems, and processes that are implemented on behalf of all companies in the SPDC Joint Venture.

The statement also clarified that SPDC’s employees will remain employed by the company during the transition to new ownership. Shell will continue to play a role in supporting the management of SPDC JV facilities, which supply a significant portion of feed gas to Nigeria LNG and NLNG, in order to maximize Nigeria’s value from NLNG.

Looking ahead, Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, stated that the company will focus its investments on deepwater and integrated gas operations in Nigeria, in line with their previously announced intention to exit onshore oil production in the Niger Delta.

SPDC has reached a significant milestone in its journey, as it transitions into a new phase under the ownership of a Nigerian-led consortium. Over the years, the dedicated efforts of SPDC’s people have transformed it into a reputable and high-quality business.

Having played a pioneering role in Nigeria’s energy sector for decades, SPDC now looks forward to a promising future. Shell, recognizing the potential and positive investment outlook in Nigeria’s energy sector, remains committed to supporting the country’s energy needs and export aspirations in line with its strategic objectives.

The SPDC JV, which comprises SPDC Ltd, the Nigerian National Petroleum Corporation, Total Exploration and Production Nigeria Ltd, and Nigeria Agip Oil Company Ltd, is an unincorporated joint venture that collectively contributes to the growth and development of Nigeria’s energy industry.