Shell completes sale of Nigerian onshore subsidiary SPDC

Shell has finalised the sale of its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium comprising four Nigerian exploration and production companies—ND Western, Aradel Energy, First E&P, and Waltersmith—and the international energy group Petrolin. This transaction aligns with Shell's strategy to streamline its operations in Nigeria by exiting onshore oil production in the Niger Delta and focusing on deepwater and integrated gas projects.

The sale grants Renaissance a 30% stake in the SPDC joint venture. While financial details were not disclosed, the move underscores Shell's intent to concentrate future investments on offshore endeavors, reflecting a broader industry trend of shifting focus from onshore to offshore assets in Nigeria.

Shell's decision to divest its onshore assets comes amid longstanding environmental and operational challenges in the Niger Delta, including oil spills and community disputes. By transferring these assets to local entities, Shell aims to address these issues more effectively while pursuing growth in offshore projects.

Renaissance's acquisition marks a significant milestone for Nigerian indigenous companies, potentially enhancing local participation in the country's oil and gas sector. However, it also places the responsibility of managing environmental remediation and sustainable operations on the new owners, a task that has historically been a point of contention in the region.

As Shell redirects its focus to offshore projects, the company has recently announced a $5 billion investment in the Bonga North project, signaling its commitment to Nigeria's deepwater oil sector and LNG projects. This strategic pivot is expected to bolster Nigeria's position in the global energy market while addressing environmental and social concerns associated with onshore oil production.