Shell’s Nigeria unit SPDC renamed as sale to Renaissance is completed

Shell has finalized the sale of its Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Ltd. (SPDC), to Renaissance, a Nigerian-led consortium, in a $1.3 billion deal. The transaction, initially announced on January 16, 2024, was delayed by regulatory concerns but has now been completed.

The divestment aligns with Shell’s strategy to simplify its presence in Nigeria by exiting onshore oil production in the Niger Delta and focusing on Deepwater and Integrated Gas investments.

“The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership,” Shell said in its statement. “This includes the technical expertise, management systems, and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture.”

Renaissance now owns a 30% operating stake in the SPDC Joint Venture (JV), which includes 15 onshore and three shallow-water oil mining leases. Other JV partners include Nigerian National Petroleum Corporation Ltd. (55%), TotalEnergies SE (10%), and Eni SpA (5%). TotalEnergies has agreed to sell its stake to Chappal Energies Mauritius Ltd. for $860 million, while Eni retains its share after selling its Nigerian Agip Oil Co. Ltd. (NAOC) assets to Oando PLC for nearly $800 million last year.

Renaissance said SPDC will be renamed Renaissance Africa Energy Company Limited.

“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be ‘Africa’s leading oil and gas company, enabling energy security and industrialisation in a sustainable manner,” said Tony Attah, Managing Director/CEO of Renaissance.

The transaction faced regulatory scrutiny, particularly concerning the new owners’ ability to manage environmental liabilities. The Nigerian Upstream Petroleum Regulatory Commission announced plans on April 29, 2024, to assess these liabilities before allowing Shell to proceed with the sale. However, Shell confirmed that “no significant impairments are expected as a result of the completion of the transaction.”

The deal is part of a broader trend of international oil majors divesting from Nigeria’s onshore assets. Norway’s Equinor ASA exited Nigeria in December 2024 after selling a 20.21% stake in the Agbami oil field for $1.2 billion. Around the same time, Seplat Energy PLC completed its acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil.

With this divestment, Shell, TotalEnergies, and Eni continue shifting their focus to offshore assets in Nigeria, reflecting a strategic pivot in their African operations.