Shell Agrees to $1.3 Billion Sale of Nigerian Onshore Oil Business to Renaissance

Shell Plc has announced a deal to sell its Nigerian onshore oil business to a local consortium for a sum exceeding $1.3 billion.

The consortium known as Renaissance comprises prominent Nigerian exploration and production companies, including ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

The sale aligns with Shell’s long-standing objective of extricating itself from the demanding operational environment in the Niger Delta while retaining a strategic presence in other parts of Nigeria.

Apart from the initial sale price, Shell is set to receive additional cash payments of up to $1.1 billion upon completion of the transaction.

“This agreement marks an important milestone for Shell in Nigeria,” stated Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director.

The move is part of Shell’s broader strategy to simplify its portfolio and focus disciplined investments on its deepwater and integrated gas positions in Nigeria.

The sale follows a complex process that faced delays in 2022 due to a court ruling, which mandated a pause in Shell’s divestment plans amid allegations of pollution.

The recent decision by Nigeria’s Supreme Court, upholding Shell’s appeal against the ruling, cleared the way for the completion of the sale.

Shell, with a history of over half a century in Nigerian oil operations, initiated plans to exit its onshore positions almost three years ago.

The onshore operations had become increasingly challenging, with issues such as environmental pollution claims from local communities and persistent oil theft causing damage to infrastructure.

After the sale’s completion, Shell will maintain its presence in Nigeria through its deepwater oil business, Shell Nigeria Exploration and Production Company Ltd.

Also, other units, including Shell Nigeria Gas Ltd. (providing gas to domestic customers) and solar firm Daystar Power Group, will continue operations.

Shell will also retain its 25.6% stake in Nigeria LNG, a company specializing in liquefied natural gas production and export.