The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has assured that the Federal Government will not obstruct legitimate business transactions in the oil sector and will promptly approve the $2.4 billion onshore asset sale of Shell, provided the necessary documents are provided by the oil major.

    Shell, a British energy company, recently announced an agreement to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited, to Renaissance for $2.4 billion after a century of operations in the Niger Delta. Renaissance, a consortium of five companies, including four Nigerian exploration and production firms and an international energy group, has confirmed the deal.


    While acknowledging the completion of the transaction is contingent on approvals from the Federal Government of Nigeria and other conditions, Lokpobiri, speaking at the World Economic Forum in Davos, Switzerland, emphasized the government’s commitment to facilitating the sale, contingent upon the submission of requisite documentation by Shell.

    He reiterated the Federal Government’s dedication to creating a business-friendly atmosphere in the oil and gas sector, as stated in a press release from his media aide, Nneamaka Okafor, on Thursday in Abuja.

    Regarding Shell’s divestment, the minister affirmed, “Once we receive the necessary documents, we will expedite the required considerations and consent.”

    In response to concerns about international oil companies divesting from onshore assets, Lokpobiri emphasized the positive aspects of such diversification. He highlighted that Nigeria stands to gain, as it presents opportunities for capable indigenous companies to acquire and effectively manage these assets, resulting in increased profitability and the realization of their full potential.

    To address any apprehensions about potential negative impacts on the country, Lokpobiri reassured Nigerians that the diversification would not have adverse effects on Nigeria.

    Shell Leaves Onshore Nigeria After 88 Years

    Shell Plc has reached an agreement to sell its Nigerian onshore oil and gas subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium called Renaissance for a total of $2.4 billion. This transaction marks the conclusion of Shell’s operations in Nigeria after nearly a century. The divestment will see Shell exit Nigeria’s onshore operations, 88 years after its establishment in the country.

    80adce998a5fdcca926a87273a7c4e42 XL

    Shell intends to divest the SPDC for $1.3 billion, with additional payments of up to $1.1 billion, as officially announced. Concurrently, Aradel Holdings Plc, a leading integrated indigenous energy company in Nigeria, has disclosed its acquisition through Aradel Energy Limited of an equity interest in the divested SPDC assets.

    This acquisition follows the signing of a significant transaction between Renaissance Africa Energy Company Limited and Shell International Plc, facilitating the acquisition of Shell’s entire shareholding (100%) in The Shell Petroleum Development Company of Nigeria Limited (SPDC).

    Renaissance, composed of ND Western Limited, Aradel Energy Limited, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group, all possessing demonstrated operational capabilities, has successfully acquired the Shell Petroleum Development Company of Nigeria Limited (SPDC). This acquisition signifies a significant achievement for Aradel, promising substantial benefits for its shareholders, reinforcing its financial outlook, and solidifying its strategic standing in the Nigerian energy market.

    Despite the divestment from onshore operations, SPDC Limited, with a 30% stake in the SPDC joint venture holding 18 onshore and shallow water mining leases, will remain the operator. Other joint venture partners include the Nigerian National Petroleum Corporation (55%), TotalEnergies (10%), and Italy’s Eni (5%).


    Shell will retain its liquefied natural gas plant and other assets in Nigeria despite exiting onshore operations. Aradel is committed to collaborating with all stakeholders in Renaissance and the SPDC Joint Venture, ensuring a seamless transition and fostering sustained growth and success in Nigeria and beyond.

    The completion of the deal is contingent on meeting conditions precedent and obtaining approvals from the Federal Government of Nigeria.

    Explore For More News Updates