Shell has agreed to sell its Nigerian onshore oil business to Renaissance, a consortium of local companies, for more than $1.3 billion. The sale is subject to government approval.
- The deal allows Shell to fulfill its long-term goal of extracting itself from the challenging operating environment in the Niger Delta, where it has faced disputes with local communities and human rights accusations.
- Renaissance, the buyer of the business, comprises Nigerian exploration and production companies ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin. The consortium is led by Tony Attah, a former Shell employee with extensive industry experience.
- Despite the sale, Shell will maintain its presence in Nigeria through its deep-water oil, natural gas, and solar businesses.
- Shell will provide the buyers with secured term loans of up to $1.2 billion for funding requirements and additional financing of up to $1.3 billion over future years. The company expects to take an impairment to the net book value of the unit upon completion of the deal.