Shell Agrees to Sell Nigerian Oil and Gas Assets for $2.4 Billion

London – Shell, the British company, announced on Tuesday that it has agreed to sell its onshore oil and gas assets in Nigeria for up to $2.4 billion to a consortium of five companies.

In a statement, Shell mentioned that it will sell Shell Petroleum Development Company of Nigeria Limited (SPDC) for $1.3 billion. The buyers will additionally pay an extra payment of up to $1.1 billion related to previous obligations upon completion.

The consortium, known as the Renaissance Group, includes ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

Shell is seeking to divest its Nigerian oil and gas operations, which have been plagued by spills and theft for years, since 2021.

This move aligns with Shell’s strategic decision to reshape its portfolio and focus on other ventures. The consortium’s acquisition signifies a major development in the Nigerian energy sector and highlights the ongoing shifts in the global energy landscape.

The sale is expected to contribute to the development and growth of the Nigerian oil and gas industry, bringing new opportunities for the consortium and potentially improving the environmental and security challenges associated with the assets.

The completion of the deal remains subject to regulatory approvals and customary closing conditions. Both Shell and the consortium express optimism about the potential positive impact of this transaction on the energy landscape in Nigeria.