Shell PLC (LSE:SHEL, NYSE:SHEL) has struck a deal to sell its onshore business in Nigeria, SPDC, for US$1.3 billion, plus additional cash payments of up to US$1.1 billion.
The oil and gas giant said the division has been acquired by a consortium called Renaissance, which includes oil firms ND Western, Aradel Energy, First E&P, Watersmith and Petrolin.
Shell said the deal is designed to preserve SPDC's operating capabilities after the change of ownership.
Shell will continue to support management of the SPDC joint venture facilities that supply a "major portion" of the feed gas to Nigeria LNG, in which Shell holds a 25.6% interest.
“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream director.
The net book value of the entity subject to this transaction is approximately US$2.8 billion as at 31 December 2023.