Shell To Sell Off Subsidiary, Exit Oil Exploration in Nigeria

British Oil giant Shell said it has reached an agreement to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance.

Renaissance is a consortium of five firms made up of four exploration and production companies based in Nigeria and also an international energy group.

Shell, in its statement, said the “Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.

“Transaction will preserve SPDC’s operating capabilities for the benefit of a joint venture. The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership. This includes the technical expertise, management systems, and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV)”.

Shell has reached an agreement to sell its Nigerian onshore subsidiary, SPDC.

Completion of the transaction is subject to approvals by the Federal Government of Nigeria. More: https://t.co/zdwgieT7sm

— Shell (@Shell) January 16, 2024

And to address concerns over the status of workers, Shell said that the existing staff would still retain their employment.

“SPDC’s staff will continue to be employed by the company as it transitions to new ownership”.

The company also allayed fears of retrenchment in a reply to a tweep on its X handle.

We do not expect a loss of employment. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.

— Shell (@Shell) January 16, 2024