After 88 years, Shell ends onshore operations in Nigeria

Shell Plc has received final approval from the Nigerian government through the petroleum minister for the $2.4 billion sale of its onshore and shallow-water oil and gas assets to Renaissance Group, ending nearly a century of the company’s onshore operations in Nigeria.

Shell has been active in Nigeria’s onshore fields since 1936.

Renaissance, a consortium of five Nigerian firms, announced the milestone on Wednesday, calling it “a significant step forward from the announcement of the sale and purchase agreements in January.”

The deal includes Shell’s 30% participating interest in its joint venture assets operated by Shell Petroleum Development Company (SPDC).

The assets comprise approximately 250 oil wells, 37 gas wells, four gas plants, and two oil export terminals. The assets hold an estimated 6.73 billion barrels of oil and condensate and 56.27 trillion cubic feet of gas.

The approval follows an earlier rejection in October by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which had raised concerns over Renaissance’s capacity to manage the assets.

Renaissance Group, formed by Aradel Holdings Plc alongside ND Western, First E&P, Petrolin, and Waltersmith Group, successfully addressed these concerns to secure the government’s nod.

The move marks part of a broader retreat by international oil majors from Nigeria’s onshore sector, citing challenges such as oil spills, theft, and regulatory hurdles. In recent years, Exxon Mobil and Equinor ASA have also sold their onshore assets to local energy firms, signaling a shift toward indigenization of Nigeria’s oil sector.

Despite this exit, Shell continues its deepwater operations in Nigeria. Just days before the approval, Shell announced a final investment decision for the Bonga North project, a major deepwater development.

The project will serve as a subsea tie-back to Shell’s Floating Production Storage and Offloading (FPSO) facility, where the company holds a 55% stake.

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Bonga North is expected to deliver significant output, with an estimated 300 million barrels of oil equivalent recoverable and peak production of 110,000 barrels per day.

Shell’s partners in the project include Exxon Mobil-owned Esso Exploration and Production (20%), TotalEnergies (12.5%), and Nigerian Agip Exploration (12.5%). First oil is anticipated by the end of the decade.

The dual developments—the $2.4 billion onshore exit and the deepwater investment—underscore Shell’s strategy to focus on offshore projects while addressing Nigeria’s push for increased local participation in its energy sector.