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Shell PLC has agreed to sell its Nigeria onshore oil business to a consortium of five companies for as much as $2.4B, while continuing to invest in its deep-water and integrated gas positions in the country.
According to the multinational corporation, it will receive $1.3B initially for Shell Petroleum Development Company of Nigeria, with the buyer paying up to an additional $1.1B relating to prior receivables and cash balances.
Meanwhile, if approved by the Nigerian government, the transaction would fulfill Shell’s long-term goal of extracting itself from a challenging operating environment in the Niger Delta region, while retaining a presence elsewhere in the country.
Speaking on the development, integrated gas and upstream director, Zoe Yujnovich, said, “This agreement marks an important milestone for Shell in Nigeria,” adding that the deal is “simplifying our portfolio and focusing future disciplined investment in Nigeria on our deep water and integrated gas positions.”
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The buyer of the asset, known as Renaissance, is made up of exploration and production companies namely, ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, all of which are based in Nigeria, according to the statement.
The announcement comes after a laboured sales process that had to be halted in 2022 after a court ruling ordered Shell Petroleum Development Company of Nigeria Ltd. to pause its divestment plans pending the outcome of a court case related to allegations of pollution.
