- Shell has agreed to sell its Nigerian onshore oil and gas subsidiary in Nigeria for up to $2.4 billion.
- Shell will remain active in Nigeria’s more lucrative and less problematic offshore sector.
British energy major, Shell, has agreed to sell its Nigerian onshore oil and gas subsidiary in Nigeria to a consortium of five mostly local companies for up to $2.4 billion after nearly a century of operations there. Active in the West African country since the 1930s, Shell has struggled with hundreds of oil spills at its onshore operations due to theft, sabotage, and operational issues that have led to costly repairs and high-profile lawsuits.
It has sought to sell its Nigerian oil and gas business since 2021 but will remain active in Nigeria’s more lucrative and less problematic offshore sector. Shell will sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion, it said in a statement. At the same time, the buyers will make an additional payment of up to $1.1 billion for prior receivables at completion.
The companies include ND Western, Aradel Energy, First E&P, Waltersmith, all local oil exploration and production companies, and Petrolin, a Swiss-based trading and investment company. Shell’s SPDC Limited operates and has a 30 per cent stake in the SPDC joint venture that holds 18 onshore and shallow water mining leases. SPDC will remain the operator. Other partners in the joint venture are the state’s Nigerian National Petroleum Corporation (NNPC), which holds 55 per cent, TotalEnergies, with 10 per cent and Italy’s Eni, with 5 per cent.