British multinational Oil and Gas Company, Shell has decided to sell its Nigerian onshore oil and gas unit for up to $2.4 billion to a group of five primarily local businesses after nearly a century of operations.
The energy giant, pioneered Nigeria’s oil and gas business, beginning in the 1930s, it has struggled for years with hundreds of onshore oil spills and as a result of theft, sabotage and oil operational issues has led to costly repairs and high-profile lawsuits.
Since 2021, Shell has sought to sell its Nigerian onshore gas, oil and gas business but will remain active in Nigeria’s more lucrative and less problematic offshore sectors. Shell’s exit is part of a broader retreat by Western energy companies from Nigeria as they focus on newer and more profitable operations.
ExxonMobil, Italy’s ENI, Norway Equinor, have struck deals to sell assets in the country in recent years. The British major will sell the Shell Petroleum Company of Nigeria Limited for consideration of US $1.3 billion, it said in a statement, while buyers will make an additional payment of up to US $1.1 billion relating to the proud receivables at completion.
The consurtium, Renaissance Africa Energy comprise ND Western, Aradel Energy and First E & P, WalterSmith, all local oil exploration and production companies and Petrolink, a Swiss -based trading and investment company.