Shell plc is a British multinational oil and gas company headquartered in London. Shell is a public limited company with a primary listing on the London Stock Exchange and secondary listings on Euronext Amsterdam and the New York Stock Exchange.
Shell has announced its withdrawal from oil exploration in Nigeria, revealing its intention to divest its onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance at a total sum of $2.4 billion.
The SPDC JV is an unincorporated joint venture comprised of SPDC Ltd (30%), the government-owned Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%) and Nigeria Agip Oil Company Ltd (5%).
The newly appointed custodians of the exploration subsidiary form a consortium of five entities, comprising four indigenous exploration and production companies based in Nigeria, alongside an international energy group. This strategic move was communicated through an official statement released in London on Tuesday and made available on the company’s website and an announcement was also made Via their Official Twitter (X) Account.
Shell has reached an agreement to sell its Nigerian onshore subsidiary, SPDC.
Completion of the transaction is subject to approvals by the Federal Government of Nigeria. More: https://t.co/zdwgieT7sm
— Shell (@Shell) January 16, 2024
The press statement emphasised that the sale is contingent upon obtaining approvals from the Federal Government, in addition to meeting other conditions stipulated by governmental and market regulators.
Notably, the terms of the sale have been crafted to preserve SPDC’s operational capabilities following the ownership transition. This includes the retention of technical expertise, management systems, and processes within the SPDC Joint Venture. Notably, the existing workforce at SPDC will continue employment during this transitional phase.
In a commitment to ongoing support, Shell will maintain a role in overseeing the management of SPDC JV facilities. This ensures the uninterrupted supply of feed gas to Nigeria LNG, underlining Shell’s dedication to facilitating Nigeria’s energy requirements.
The statement from the company affirmed, “SPDC’s staff will continue to be employed by the company as it transitions to new ownership. Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.”
As part of Shell’s strategic realignment, the focus of investments will shift towards deepwater and integrated gas positions, indicating a departure from offshore oil production in the Niger Delta.
The Official Twitter (X) account of Shell