Shell Sells Nigerian Oilfields

Shell Sells Nigerian Oilfields

Shell’s Agreement to Sell Nigerian Onshore Oilfields

Shell, an international oil company, has made a deal to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance. Renaissance is a group of five companies called a consortium. The consortium includes ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin. However, the sale is not final yet. It still needs approval from the Federal Government of Nigeria and has other conditions to meet.

What Shell Says About the Transaction

According to a statement from Shell, the transaction is designed to keep SPDC’s operating capabilities intact. SPDC is responsible for managing the oilfields on behalf of all the companies in the SPDC Joint Venture. The employees of SPDC will still have jobs even after the ownership changes. Shell will also continue to support the management of SPDC JV facilities that supply gas to Nigeria LNG.

Shell’s Perspective on the Deal

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, believes that this agreement is an important step for Shell in Nigeria. It aligns with their plan to stop producing oil onshore in the Niger Delta. Shell wants to focus on other areas like deepwater and integrated gas positions. Yujnovich also sees a positive future for Shell in Nigeria and wants to support the country’s energy needs and export goals.

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Conclusion

Shell’s decision to sell its Nigerian onshore oilfields is a significant move. It will allow them to simplify their operations and concentrate on other areas of their business. The sale is not complete yet, but if it goes through, SPDC will enter a new chapter under the ownership of a Nigerian-led consortium. Shell remains committed to supporting Nigeria’s energy sector and its future growth.

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