Shell PLC - London-headquartered oil & gas producer - Agrees to sell its Nigerian onshore subsidiary, Shell Petroleum Development Co of Nigeria Ltd, or SPDC, to Renaissance for USD1.3 billion. Renaissance is a consortium comprised of five companies made up of four exploration and production companies in Nigeria, and an international energy group. Up to USD1.1 billion in further cash payments are expected following completion.
Says transaction is designed to preserve SPDC's operating capabilities after the change of ownership. Shell will continue to support management of the SPDC joint venture facilities that supply a "major portion" of the feed gas to Nigeria LNG, in which Shell holds a 25.6% interest.
"This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions," says Zoe Yujnovich, director at Shell's Integrated Gas & Upstream unit.
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By Elizabeth Winter, Alliance News deputy news editor
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