By Ayo Joseph
Shell Group on Tuesday announced that it has reached an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC).
Announcing the development in a statement made available on its official website, the oil company detailed that it sold its onshore subsidiary to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.
“Shell 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 comprising four exploration and production companies based in Nigeria and an international energy group,” the statement read.
The company further disclosed that “Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.”
This is not the first time that Shell will be announcing its intention to divest from oil exploration in the country. Recall that the oil company in 2021 announced plans to divest its onshore oil stakes.
However, the oil company in 2022 suspended plans to divest from the country onshore
The Managing Director of SPDC and Chairman, Osagie Okunbor, in a statement released, said the sale of the assets was put on hold pending the outcome of its appeal at the Supreme Court.
Shell had struggled for years with spills in the Niger Delta as a result of pipeline theft and sabotage as well as operational issues. The spills have led to costly repair operations and high-profile lawsuits.
