Shell completes sale of Nigerian onshore unit

UK-based LNG giant Shell has completed the previously announced sale of its Nigerian onshore subsidiary SPDC to Renaissance for $2.4 billion.

Shell announced the compilation of the deal revealed in January 2024 in a statement on Thursday.

Renaissance now controls SPDC’s 30 percent stake in the SPDC JV, an unincorporated joint venture with the government-owned Nigerian National Petroleum Corporation (55 percent), Total Exploration and Production Nigeria Ltd (10 percent) and Agip Energy and Natural Resources (Nigeria) Limited (5 percent).

“The divestment of SPDC aligns with Shell’s intent to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and a focus of future disciplined investment in its deepwater and integrated gas positions,” Shell said.

Shell previously said it will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG, to help Nigeria achieve maximum value from NLNG.

NLNG, the operator of the six-train 22 mtpa LNG terminal, is owned by NNPC (49 percent), Shell (25.6 percent), TotalEnergies (15 percent), and Eni (10.4 percent).

Besides the six existing trains, Nigeria LNG is also adding the seventh production unit at the Bonny Island plant.

Shell’s interest in NLNG is outside the scope of this transaction, as well as SNEPCo, which produces oil and gas in the deepwater Gulf of Guinea and SNG, which provides gas to domestic industrial and commercial customers.