Shell has reached an agreement to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies consisting of four exploration and production firms based in Nigeria and an international energy group.

This move was communicated through an official statement released in London and made available on the company’s website.

The statement confirms that the British Major will sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion, while the buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.

According to Shell, Renaissance will take over the responsibility for dealing with spills, theft, and sabotage, which it has faced in recent years in multiple lawsuits, as well as the payment of compensation for damage caused as a result of spills in the Niger Delta.

This agreement marks an important milestone for Shell in Nigeria, aligning with the continuous trend of divestment of IOCs in the Niger Delta.

The completion of the transaction is contingent on approvals from the Federal Government of Nigeria and other conditions. The deal has been structured to maintain the full spectrum of SPDC’s operational capabilities following the change in ownership.

This includes technical expertise, management systems, and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).

Staff employed by SPDC will continue to be part of the company during the transition to new ownership.

After completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a significant portion of the feed gas to Nigeria LNG (NLNG) to help Nigeria maximize value from NLNG.

Apart from its operations and stakes in several fields deep offshore, Shell still has a liquefied natural gas plant and other assets in Nigeria.

SPDC, which remains the operator, was formed in 1979, incorporating assets of the older Shell-BP consortium, with its current partners entering at later stages.