Shell Exits Nigeria’s Onshore After 88 Years

Shell Plc has agreed to sell its Nigerian onshore oil and gas subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium of five companies known as Renaissance for a total of $2.4 billion, marking the end of Shell’s nearly century-long operations in Nigeria. By this divestment, the company is set to exit Nigeria’s onshore operations 88 years after it opened in the country.

Shell aims to divest the SPDC for $1.3 billion, with additional payments of up to $1.1 billion, according to the official announcement.

This is as Aradel Holdings Plc, Nigeria’s leading integrated indigenous energy Company, announced its acquisition through Aradel Energy Limited of an equity interest in the divested SPDC assets.

This acquisition is premised on the signing of a landmark transaction between Renaissance Africa Energy Company Limited and Shell International Plc to acquire its 100 per cent shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).

Renaissance is owned by ND Western Limited, Aradel Energy Limited, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group, each with demonstrable and proven operational capabilities.

This acquisition marks a significant milestone for Aradel, which will bring enormous benefits to its shareholders, further strengthen its financial outlook and consolidate its strategic positioning in the Nigerian energy market.

SPDC Limited, which operates with a 30 per cent stake in the SPDC joint venture holding 18 onshore and shallow water mining leases, will continue to be the operator. Other joint venture partners include the Nigerian National Petroleum Corporation (55 per cent), TotalEnergies (10 per cent), and Italy’s Eni (five per cent).

Despite exiting onshore operations, Shell retains its liquefied natural gas plant and other assets in Nigeria.

Aradel is committed to working in partnership with all the stakeholders in Renaissance and the SPDC Joint Venture to ensure a smooth transition and drive continued growth and success in Nigeria and beyond.

Completion of the deal is subject to meeting conditions precedent, and approvals of the Federal Government of Nigeria.