Shell Ends 85-Year Presence in Nigeria’s Onshore Oil Sector, sell Assets for $1.3 Billion
The British energy giant, Shell has finalized the sale of its onshore oil and gas subsidiary in Nigeria after an uninterrupted 85-year tenure.
The assets have been acquired by a consortium comprised mainly of local companies, with the transaction valued at an impressive $2.4 billion.
Shell’s long-standing engagement in Nigeria, dating back to the 1930s, has faced persistent challenges, notably an array of oil spills linked to theft, sabotage, and operational complications. These issues have necessitated extensive and costly repairs, leading to high-profile legal battles for the energy major.
The subsidiary in question, Shell’s SPDC Limited, not only operates but also retains a 30% stake in the SPDC joint venture, which holds 18 onshore and shallow water mining leases. Despite the ownership change, SPDC will continue as the operator.
The joint venture includes significant contributions from the Nigerian National Petroleum Corporation (NNPC), holding a majority 55%, TotalEnergies with 10%, and Italy’s Eni with 5%. This strategic partnership has been a cornerstone of Nigeria’s oil and gas landscape.
While divesting from its onshore operations, Shell still maintains a presence in Nigeria through its involvement in deep offshore fields, possession of a liquefied natural gas plant, and other assorted assets. The sale marks a significant shift in the dynamics of Nigeria’s oil sector, prompting speculation about the future trajectory of energy investments in the region.