Strategic Shift in Oil Exploration
In a strategic decision, Shell Group has reached an agreement to sell its Nigerian onshore subsidiary, SPDC, signifying a notable shift in its focus away from oil exploration in Nigeria.
The move is part of Shell’s broader strategy to reallocate resources and investments.
Consortium-Led Acquisition
The sale involves a consortium led by Renaissance, featuring four local exploration and production companies based in Nigeria alongside an international energy group.
The completion of the transaction is contingent upon approvals from the Federal Government of Nigeria and other specified conditions.
Shell’s Decision to Divest
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, highlighted the agreement as a crucial milestone for Shell Nigeria.
The decision to divest from SPDC aligns with Shell’s vision to redirect its investments, with a particular emphasis on its activities in Nigerian waters.
Background on Divestment Suspension
This announcement follows Shell’s suspension of the divestment of its interest in SPDC in July 2022.
At that time, the Managing Director of SPDC, Osagie Okunbor, revealed that the sale had been put on hold pending the outcome of an appeal at the Supreme Court.
Awaiting Regulatory Approvals
While the agreement has been unveiled, the finalization of the transaction is contingent upon regulatory approvals from the Federal Government of Nigeria and compliance with other predefined conditions.
The move signifies a strategic shift for Shell in its operational focus within the Nigerian energy landscape.
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