SHELL Plc has agreed to sell its Nigerian onshore oil and gas subsidiary to a consortium of local companies for up to $2.4 billion, Bloomberg reported on Tuesday, January 16.

According to the report, the British multinational oil and gas company will sell its Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion.

At the same time, the buyers will pay up to $1.1 billion for prior receivables at completion.

“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,” Shell Head of Upstream, Zoë Yujnovich, was quoted to have said.

The report revealed that the buyer of the business, known as Renaissance, is composed of exploration and production companies – ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin – all of which are based in Nigeria, adding that the Renaissance’s chief executive officer and managing director is Tony Attah, a former Shell team member.

Meanwhile, Shell has been in operation in Nigeria since 1937 and, for decades, has been at loggerheads with local communities over oil spills, theft, sabotage and accusations of human rights violations.

These operational issues have led to a series of lawsuits before the company, which, since 2021, resulted in selling its oil and gas assets in the country.

If the deal goes through, Shell will join the likes of Exxon Mobil, Italy’s Eni and Norway’s Equinor, which have struck deals to sell their assets in recent years.

Tuesday’s announcement comes after a complex sales process that had to be halted in 2022 after a court ordered SPDC in Nigeria to pause its divestment plans pending the outcome of a separate case related to allegations of pollution, The ICIR reported.

Earlier this year, on January 5, Nigeria’s Supreme Court upheld Shell’s appeal against the ruling.

Shell operates and has a 30 per cent stake in the SPDC joint venture that holds 18 onshore and shallow water mining leases.

Other partners in the joint venture are the Nigerian National Petroleum Corporation Limited (NNPCL), which holds 55 per cent, TotalEnergies with 10 per cent, and Italy’s Eni with 5 per cent.

Besides its operations and stakes in several fields deep offshore, Shell still has a liquefied natural gas plant and other assets in Nigeria.