Shell Plc has agreed to sell its Nigerian onshore oil business to a consortium of local companies for more than $1.3 billion.
If approved by the government, the transaction would fulfil Shell's long-term goal of extracting itself from a challenging operating environment in the Niger Delta region, while retaining a presence elsewhere in the country.
Beyond the initial price tag, Shell said it will receive additional cash payments of as much as $1.1 billion on completion.
Integrated gas and upstream director, Zoe Yujnovich said, "This agreement marks an important milestone for Shell in Nigeria," adding that the deal is "simplifying our portfolio and focusing future disciplined investment in Nigeria on our deep-water and integrated gas positions."
The buyer of the asset, 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, according to the statement.
The announcement comes after a laboured sales process that had to be halted in 2022 after a court ruling ordered Shell Petroleum Development Company of Nigeria Ltd. to pause its divestment plans pending the outcome of a court case related to allegations of pollution.
Earlier this month, Nigeria's Supreme Court upheld Shell's appeal against this ruling.
Following the sale, Shell will continue operating in the country through its deep-water oil business, Shell Nigeria Exploration and Production Company Ltd.
Another unit that provides gas to domestic industrial and commercial customers, Shell Nigeria Gas Ltd., will continue operating as will solar firm Daystar Power Group. Shell will retain its 25.6% stake in Nigeria LNG, which produces and exports liquefied natural gas.
Shell Must Not Be Allowed To Wash Its Hands Of Damages Caused By Oil Spills - AI
The Head of Business and Human Rights of Amnesty International, AI, Mark Dummett, has called on the Federal Government of Nigeria, not to allow multinational oil and gas company, Shell, to wash its hands of the problems caused by decades of oil spills in the Niger Delta.
Dummett, made the demand in a terse statement released on the X handle of Amnesty International
Dummett said: "For decades oil spills have damaged the health and livelihoods of many inhabitants of the Niger Delta.
"Shell has earned billions of dollars from this business and it must make sure that its withdrawal does not have negative human rights and environmental consequences. We are calling for effective remedy for people whose rights have long been abused.
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"Shell should not be allowed to wash its hands of the problems and leave, and we urge the Nigerian government to require Shell to provide a full assessment of existing pollution and the current state of its infrastructure. This information needs to be shared with affected communities.
"Nigeria's government must ensure local inhabitants' concerns about the sale are fully appraised and addressed, and uphold and protect the human rights of its citizens, including their rights to an adequate standard of living, clean water and health."
