Shell has reached an agreement to sell its Nigerian onshore oil and gas subsidiary to Renaissance, a group of local consortium of five companies for up to $2.4 billion.
Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director, verified this in a statement on Tuesday, Jan 16, where he emphasized on the importance of the bargain.
If approved by the government, the transaction would satisfy Shell’s goal of removing itself from a difficult operating environment in the Niger Delta region, while still maintaining a presence somewhere else in the country.
Shell seeks to sell the Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion, while the buyers will make an additional payment of up to $1.1 billion on completion, amounting to a total of $2.4bn.
The purchasing group of local consortium, named Renaissance, comprises of ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin.
