- Shell agrees to sell its onshore subsidiary for $1.3bn and an additional $1.1bn.
- Other partners in the joint venture are NNPC (55%), TotalEnergies (10%), and Italy’s Eni (5%).
After nearly a century of operations, Shell has agreed to sell its Nigerian onshore oil and gas subsidiary for up to $2.4 billion. Shell plans to sell the subsidiary to a consortium of five mostly local companies. However, Shell Petroleum Development Company of Nigeria Limited (SPDC) will remain the operator.
Though the firm has been active in Nigeria since the 1930s, Shell has struggled for years with hundreds of oil spills at its onshore operations due to theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits. The firm has attempted to sell its Nigerian oil and gas business since 2021 but will remain active in Nigeria’s more lucrative and less problematic offshore sector.
In a statement, Shell noted that it will sell SPDC for $1.3 billion. In addition, the buyers will make an additional payment of up to $ 1.1 billion relating to prior receivables at completion. The renaissance comprises 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. Other partners in the joint venture are the Nigerian National Petroleum Corporation (NNPC), which owns 55 per cent, TotalEnergies, with 10 per cent, and Italy’s Eni, with 5 per cent. Apart from its operations and stakes in several fields deep offshore, Shell also still has a liquefied natural gas plant and other assets in Nigeria.