Shell to sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Group
Shell has agreed to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies. This transaction is still pending approval from the Federal Government of Nigeria and other conditions. However, once completed, the transaction will ensure that SPDC’s operating capabilities are preserved for the benefit of the joint venture.
This includes maintaining the technical expertise, management systems, and processes that SPDC currently implements on behalf of all the companies in the SPDC Joint Venture. Additionally, SPDC’s staff will continue to be employed by the company during the transition to new ownership.
Even after the sale, Shell will still play a role in supporting the management of SPDC JV facilities that supply a significant portion of the feed gas to Nigeria LNG (NLNG). This support aims to help Nigeria maximize the value derived from NLNG.
In terms of Shell’s future investment focus in Nigeria, the company plans to concentrate on its Deepwater and Integrated Gas positions. This decision aligns with Shell’s strategy to exit onshore oil production in the Niger Delta and simplify its portfolio. Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, expressed that this agreement is an important milestone for Shell in Nigeria and that the company sees a bright future in the country’s energy sector. Shell remains committed to supporting Nigeria’s energy needs and export ambitions in areas that align with its strategy.
