British Energy Giant, Shell Plc has advanced an agreement to sell its Nigerian onshore oil assets to five local companies for $2.4 billion.
This was announced by the Shell’s Integrated Gas and Upstream Director, Zoe Yujnovich, in a statement on Tuesday.
Yujnovich said, “this agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions”.
The five local consortiums, are ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.
The company said, it will sell the Shell Petroleum Development Company of Nigeria Limited (SPDC) for $1.3 billion, while the buyers will make an additional payment of up to $1.1 billion.
The exit, according to Shell was due to the challenging operating environment in the Niger Delta region over the years with hundreds of onshore oil spills as a result of theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits.
