Shell Completes Sale of Nigerian Onshore Subsidiary to Renaissance Consortium

UK-headquartered energy giant Shell has finalized the sale of its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium consisting of five companies–ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

Shell’s divestment aligns with its strategy to streamline its presence in Nigeria by exiting onshore oil production in the Niger Delta and focusing on future investments in deepwater and integrated gas projects. The consortium, led by Renaissance, has announced that SPDC will be rebranded as Renaissance Africa Energy Company Limited.

“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialization in a sustainable manner,’” stated Tony Attah, Managing Director/CEO of Renaissance.

Following the transaction’s completion, Renaissance now holds SPDC’s 30% stake in the SPDC JV, a joint venture where the Nigerian National Petroleum Corporation (NNPC) owns 55%, Total Exploration and Production Nigeria holds 10%, and Agip Energy and Natural Resources (Nigeria) has a 5% interest.

At the time of the announcement in January 2024, the entity’s book value subject to the sale was estimated at around $2.8 billion. The SPDC JV holds 15 oil mining leases for onshore petroleum operations and three for shallow water petroleum operations in Nigeria.

Zoë Yujnovich, the former Integrated Gas and Upstream Director at Shell, expressed that it was time for SPDC to embark on its next phase under the ownership of a seasoned Nigerian-led consortium.

In addition to international ventures, Shell has been actively engaged in domestic initiatives. Earlier this month, the UK conglomerate revealed plans to develop a field development plan (FDP) and make a final investment decision (FID) for the Selene gas project in 2027.