Shell shifting focus to deepwater and integrated gas in Nigeria as it wraps up onshore unit sale

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

According to Shell, the divestment is in line with its plan to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and focus on future disciplined investment in its deepwater and integrated gas positions. As stated by Renaissance, SPDC will be renamed 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 industrialisation in a sustainable manner,'” said Tony Attah, Managing Director/CEO of Renaissance.

Now that the deal is finalized, Renaissance controls SPDC’s 30% stake in the SPDC JV, an unincorporated joint venture in which the state-owned Nigerian National Petroleum Corporation (NPC) holds 55%, Total Exploration and Production Nigeria 10%, and Agip Energy and Natural Resources (Nigeria) a 5% interest.

When the deal was announced in January 2024, the book value of the entity subject to the sale process was said to be around $2.8 billion. It was stated that SPDC JV holds 15 oil mining leases for petroleum operations onshore and three for petroleum operations in shallow water in Nigeria.

Zoë Yujnovich, then-Integrated Gas and Upstream Director at Shell, who recently decided to leave the company, said that it was time for SPDC to move to its next chapter under the ownership of an experienced Nigerian-led consortium.

In addition to international operations, Shell has been keeping busy at home. Earlier this month, the UK giant disclosed its plan to make a field development plan (FDP) and a final investment decision (FID) for the Selene gas project in 2027.