By Sandra Nwaokolo

Shell has announced its withdrawal from oil exploration in Nigeria and has reached an agreement to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies consisting of four exploration and production firms based in Nigeria and an international energy group.

This strategic move was communicated through an official statement released in London on Tuesday and made available on the company’s website.

The completion of the transaction is contingent on approvals from the Federal Government of Nigeria and other conditions.

The deal has been structured to maintain the full spectrum of SPDC’s operational capabilities following the change in ownership.

This includes technical expertise, management systems, and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).

Staff employed by SPDC will continue to be part of the company during the transition to new ownership.

After completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a significant portion of the feed gas to Nigeria LNG (NLNG) to help Nigeria maximise value from NLNG.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, stated, “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.”

Yujnovich added that Shell sees a promising future in Nigeria with a positive investment outlook for its energy sector.

The company plans to continue supporting the country’s growing energy needs and export ambitions in areas aligned with its strategy.