Shell Company Announces The $1.3 Billion Sale Of Its Nigerian Subsidiary To A Local Firm And Ends Its Oil Exploration
An innovative deal has been agreed by Renaissance Africa Energy and Shell to purchase the entirety of the latter’s ownership in the Shell Petroleum Development Company of Nigeria Limited (SPDC).
ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group are the members of the Renaissance consortium.
Shell published a message announcing the purchase, which is pending Nigerian government permission.
In a post published on its verified X (previously known as Twitter) account, Shell confirmed the withdrawal from oil exploration in Nigeria and stated that the sale was subject to receiving approvals from the Federal Government and fulfilling other requirements set forth by market and governmental regulators.
The company said in a statement on Tuesday that it would sell Shell Petroleum Development Company of Nigeria Limited (SPDC), its Nigerian subsidiary, for a consideration of $1.3 billion, with buyers having to pay an additional sum of up to $1.1 billion at closing for previous receivables.
Shell clarified that the conditions of the sale were designed to maintain SPDC’s ability to continue operations after the ownership change. “This involves keeping the SPDC Joint Venture’s management structures, procedures, and technological know-how in place. Notably, employment at SPDC will continue for its current workers during this transitioning period,” the statement said.
The massive oil company declared that it would continue to supervise the operation of SPDC JV facilities. This demonstrates Shell’s commitment to easing Nigeria’s energy needs by guaranteeing the continuous supply of feed gas to Nigeria LNG.
“The company will keep hiring SPDC employees even after it changes ownership.
