Shell has finalised the sale of The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, marking a major shift in the energy landscape of Nigeria.

The deal, initially announced on January 16, 2024, represents a major step in Shell’s strategy to simplify its operations in the country.

The divestment of SPDC is in line with Shell’s stated intention to exit onshore oil production in the Niger Delta, focusing instead on future disciplined investment in its Deepwater and Integrated Gas assets.

This move signals a strategic realignment for the energy giant within the Nigerian market.

Renaissance, a consortium of five energy companies, now assumes control of SPDC’s 30 per cent stake in the SPDC Joint Venture (JV).

This JV is an unincorporated entity that also includes the Nigerian National Petroleum Corporation (NNPC), which holds a 55 per cent stake, Total Exploration and Production Nigeria Ltd with 10 per cent, and Agip Energy and Natural Resources (Nigeria) Limited with 5 per cent.

The Renaissance consortium comprises four Nigerian exploration and production companies: ND Western, Aradel Energy, First E&P, and Waltersmith, alongside the international energy group Petrolin.

Their collective expertise and resources are expected to drive SPDC forward under new ownership.

Shell has indicated that no significant impairments are expected as a result of the completion of this transaction, ensuring a smooth transition and continued stability in Nigeria’s energy sector.

The sale represents a pivotal moment for both Shell and Nigeria, paving the way for new opportunities and investments in the country’s energy future.