Shell to Sell Nigerian Subsidiary to Renaissance for $1.3 Billion!

In line with its long-term goal of overcoming the challenging operating environment in the Niger Delta, Shell has agreed to sell its Nigerian subsidiary Shell Petroleum Development Company of Nigeria (SPDC) to Renaissance, a group with five companies including four Nigerian-based exploration and production company and an international energy group.

Renaissance will pay Shell an additional up to $1.1 billion, primarily related to prior receivables and cash balances in the business, the majority of which is expected to be paid upon completion of the transaction, which is subject to approval by the Nigerian federal government and other conditions.

The transaction is intended to retain SPDC’s full operational capabilities following the change of ownership, including the implementation of SPDC's and its joint ventures’ technical expertise, management systems and processes.

Following completion of the transaction, Shell will continue to play a role supporting the management of SPDC's joint venture facilities, which supply the majority of feed gas to Nigeria LNG.

Zoë Yujnovich, Director of Integrated Gas and Upstream at Shell, said: "This agreement marks an important milestone for Shell in Nigeria and is consistent with our previously announced intention to exit onshore oil production in the Niger Delta, simplifying our portfolio, future investment focus will be on Nigeria's deepwater and integrated gas sectors. Shell sees a bright future for Nigeria and has positive investment prospects in its energy sector. We will continue to support the country's growing energy needs and export ambitions in areas consistent with our strategy. "