Breaking: Shell To Sell Its Nigeria Onshore Oil Assets For $1.3bn

Pending the approval of Federal government, Shell Plc has concluded the agreement that will facilitate the sale of its Nigerian onshore oil assets.

When the sale is transacted, a local consortium will buy the assets for over $1.3 billion.

The purchasing consortium is named, Renaissance, and it comprises ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

Zoe Yujnovich, the Director of Shell’s Integrated Gas and Upstream confirmed the concluded agreement processes in a statement on Tuesday.

In highlighting the significance of the deal, Yujnovich said the company is focusing on streamlining its portfolio and ensuring that its investments are directing towards deep water and integrated gas ventures in Nigeria.

The obvious indication, according to Yujnovich is that the move aligns with Shell’s strategic objective to exit the challenging operating environment in the Niger Delta region.

Already, Shell is hoping to sink in additional sum by expecting to receive extra payments of up to $1.1 billion.

Recall that in 2021, Shell announced its intention to divest its Nigerian onshore assets due to the incompatibility of its long-term energy transition strategy with the challenges of operations in Nigeria, marked by theft and oil spills.