In a strategic move to streamline its portfolio and exit onshore oil production in the Niger Delta, Shell has entered into a $2.4 billion agreement to divest its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies.
Under the terms of the deal, Shell will receive an upfront payment of $1.3 billion, with an additional payment of up to $1.1 billion covering prior receivables upon completion. Importantly, Shell will retain involvement in supporting the management of SPDC JV facilities post-transaction, ensuring continuity in supplying a significant portion of feed gas to Nigeria LNG (NLNG).
SPDC Limited, maintaining a 30% stake, will continue as the operator of 18 onshore and shallow water mining leases within the joint venture. This venture comprises SPDC Ltd (30%), Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, remarked, “This agreement marks an important milestone for Shell in Nigeria, aligning with our intent to exit onshore oil production in the Niger Delta. It enables us to focus our future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions.”
Renaissance, formed by ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, brings a diverse blend of local and international expertise to the acquisition, promising a smooth transition and sustained operational success for SPDC assets.
Crucially, Shell’s decision to divest its onshore subsidiary does not affect its other key businesses in Nigeria. Operations will continue through Shell Nigeria Exploration and Production Company Limited (SNEPCo) in the deepwater Gulf of Guinea, Shell Nigeria Gas Limited (SNG) providing gas to domestic industrial and commercial customers, and Daystar Power Group offering integrated solar power solutions across West Africa.
The completion of this transaction signifies a strategic realignment for Shell, consolidating its focus on Deepwater and Integrated Gas positions in Nigeria and shaping the country’s energy landscape for sustainable growth.
Photo (oilandgasmiddleeast.com)
By: Montel Kamau
Serrari Financial Analyst
17th January, 2024
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
