International oil giant Shell 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 up to $2.4 billion.
Dailypost reported the announcement marks the end of Shell’s core operations in Nigeria, where it has been active since the formation of SPDC in 1979.
The sale is subject to approvals by the Federal Government of Nigeria, which holds a 55% stake in the venture, and other necessary conditions.
“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.”
“Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy.”
Shell emphasized that the transaction is designed to maintain the full range of SPDC’s operating capabilities after the change of ownership, including technical expertise, management systems, and processes implemented on behalf of all companies in the SPDC Joint Venture (SPDC JV).