In a move signalling a shift away from onshore oil production, energy giant Shell has agreed to sell its Nigerian onshore oil and gas assets for a total of $2.4 billion.
The buyer, a consortium led by Nigerian independent energy company, Renaissance Oil, which includes ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, marks a significant change in the landscape of Nigeria’s oil industry.
The assets being sold include Shell’s 49 percent stake in the SPDC Joint Venture, which operates over 30 oil and gas fields onshore, as well as its interest in the Forcados and Bonny export terminals.
According to the oil major, Shell will sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion, it said in a statement, while the buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.
Experts said the deal encompasses around 95,000 barrels of oil equivalent per day (boe/d) of production, making it one of the largest divestments in Shell’s history.
The deal, announced Tuesday, marks a significant shift for Shell, which has been operating in Nigeria for over 90 years.
However, the onshore assets have faced operational challenges in recent years, including security concerns and environmental activism in the Niger Delta region.
Analysts suggest that the sale reflects Shell’s broader divestment strategy, focusing on higher-margin deep-sea and liquefied natural gas (LNG) projects. Additionally, the complex operating environment in Nigeria’s onshore fields, coupled with pressure from climate change activism, may have played a role in the decision.