2024-02-01 09:12:28
The multinational oil company, Shell plc, has sold its Nigerian onshore subsidiary, Shell Petroleum Development Company (SPDC) has a Nigerian consortium for US$1.3 billion, plus an additional payment of US$1.1 billion related to previous receivables and cash balances, Africa Oil Week (AOW) reported. The sale comes as part of the restructuring of its activities in Nigeria, the third largest African oil producer.
Issa DA SILVA SIKITI
The Nigerian consortium, called Renaissance and which is taking over Shell’s onshore activities in Nigeria in historic mergers and acquisitions, includes the following companies: ND Western, Aradel Energy (formerly Niger Delta E&P), First E&P, Waltersmith and Petrolin.
“The transaction is subject to approval by the Nigerian government and would constitute the largest merger and acquisition in Nigeria’s oil and gas history,” said the London-based company, listed primarily on the London Stock Exchange (LSE) and secondarily to Euronext Amsterdam and the New York Stock Exchange.
“Shell will also provide secured term loans of up to US$1.2 billion at closing to cover various financing needs and will provide additional financing of up to US$1.3 billion in future years to fund SPDC’s share. in the development of gas resources needed to fuel liquefied natural gas (LNG), operations in which Shell retains a 25.6% stake.
The agreement covers 18 permits, including 15 onshore and three in shallow waters, with some 458 million barrels of oil equivalent of proven reserves. “These include some of Nigeria’s largest and most strategic gas assets and gas fields, making Renaissance a strategic player in Nigeria’s energy transition journey and the development of a technology-based economy. gas,” AOW emphasized.
Shell stays in Nigeria
Since Shell’s announcement to sell its onshore operations, speculation has been rife that the company was preparing to pack its bags to leave Africa’s most populous country after 87 years of operations. But Shell remains in Nigeria, contrary to the false rumors circulating on social media, most of which were spread by so-called Pan-Africanism activists, amid rising anti-Western sentiments in South Africa. West.
According to the Cable.ng website, the sale of Shell’s onshore subsidiary had been on the table for a long time, as the company was grappling with oil spills due to theft, sabotage and operational problems, which led to costly repairs and high-profile legal proceedings.
QA February 1, 2024
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