Leading global oil giant Shell has agreed to sell Shell Petroleum Development Company of Nigeria Limited, SPDC, its onshore Nigerian subsidiary, to Renaissance, an international energy organization and a partnership of five Nigerian companies, for as much as $2.4 billion.

This was revealed by the business in a statement on Tuesday.

Years after its founding in 1979, the British oil giant’s main business in Nigeria ended due to the event.

According to the business, the Federal Government of Nigeria, which owns a fifty-five percent stake in the deal, must approve it, among other requirements.

Shell clarified the implications of the development by stating that the acquisition was intended to maintain SPDC’s entire operational range after the ownership transition. These consist of the management methods, procedures, and technical know-how SPDC employs on behalf of all participating SPDC Joint Venture (SPDC JV) companies.

The statement also clarified that SPDC employees will remain with the company after it changes ownership.

To help Nigeria get the most value from NLNG, the business stated that it will continue to assist the management of SPDC JV facilities that provide a significant amount of feed gas to Nigeria LNG and NLNG.

Speaking on the business’s future course of action, Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, stated that the company will concentrate investment on deepwater and integrated gas operations.

“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.

“It is a significant moment for SPDC, whose people have built it into a high-quality business over many years. Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.

“Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy.”

According to ZINGTIE, the SPDC JV is an unincorporated joint venture with the following members: Nigeria Agip Oil Company Ltd. (5 percent), Total Exploration and Production Nigeria Ltd. (10 percent), and the government-owned Nigerian National Petroleum Corporation (55 percent).

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