Shell Strikes $2.4bn Deal To Sell Onshore Nigeria’s Assets

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11 months ago
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Mohammed Shosanya

A consortium of five mostly local companies wIll acquire onshore assets of Shell’s subsidiary for a consideration of $1.3 billion

The buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.

The transaction would fulfill Shell’s long-term goal of extracting itself from a challenging operating environment in the Niger Delta region if approved by the government,while retaining a presence in the offshore and deep offshore.

The buyer of the asset, known as Renaissance, is formed of exploration and production companies ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, all of which are based in Nigeria, according to the statement.

Renaissance Africa Energy disclosed the deal in a statement announcing the acquisition of Shell’s entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).

“We are pleased to announce the signing of a landmark transaction with Shell to acquire its entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).

“This acquisition marks a significant milestone for Renaissance, establishing its strategic position in the Nigerian market. We are committed to ensuring a smooth transition and look forward to leveraging our expertise, in partnership with SPDC’s industry-leading staff and working in partnership with all the stakeholders in the SPDC-JV to drive continued growth and success in Nigeria and beyond”

Completion of the transaction is subject to the requisite regulatory approvals,the statement said.

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