JUST IN: Shell Quits Onshore Oil Exploration In Nigeria

JUST IN: Shell Quits Onshore Oil Exploration In Nigeria....KINDLY READ THE FULL STORY HERE▶

Written By Oshiobugie John

In a strategic move, Shell has declared its exit from oil exploration activities in Nigeria, disclosing plans to divest its onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance. CONTINUE READING

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The consortium acquiring the exploration subsidiary consists of four indigenous exploration and production companies in Nigeria, along with an international energy group. The official statement conveying this decision was released in London on Tuesday, January 16, 2024.

The announcement highlighted that the sale is subject to approval from the Federal Government and must meet specific conditions laid out by governmental and market regulators.

Importantly, the terms of the sale have been carefully crafted to safeguard SPDC’s operational capabilities during the ownership transition. This includes the retention of technical expertise, management systems, and processes within the SPDC Joint Venture. Notably, the existing workforce at SPDC will retain their employment during this transitional phase.

In a commitment to continuous support, Shell will retain a role in overseeing the management of SPDC JV facilities, ensuring the uninterrupted supply of feed gas to Nigeria LNG and emphasizing Shell’s dedication to facilitating Nigeria’s energy requirements.

The company’s statement affirmed, “SPDC’s staff will continue to be employed by the company as it transitions to new ownership. Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.”

As part of Shell’s strategic realignment, future investments will prioritize Deepwater and Integrated Gas positions, signifying a departure from onshore oil production in the Niger Delta.

Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director, stressed the significance of this decision for Shell’s operations in Nigeria. According to Yujnovich, the agreement marks a crucial moment for SPDC, a longstanding participant in Nigeria’s energy sector.

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