Shell, a British oil and gas company, has finalized the sale of The Shell Petroleum Development Co of Nigeria Ltd (SPDC) to a consortium of predominantly local energy players. The consortium includes ND Western, Aradel Holdings Plc, First E&P, the Waltersmith Group, Petroleum Development Co Ltd, and Petrolin. The deal, valued at $1.3 billion, with additional payments of up to $1.1 billion pending, focuses on onshore oil assets in Nigeria's Niger Delta region. The SPDC, operating in the onshore and shallow water oil and gas sector, contributes approximately 10 percent of Nigeria's domestic natural gas supply. The sale aims to streamline Shell's portfolio, allowing the company to redirect investments towards critical assets in the Bongo and Erha fields, optimizing its focus and resources for a more profitable and productive future in Nigeria.
This strategic transaction not only benefits Shell but also underscores the capability of local Nigerian companies. The African Energy Chamber (AEC) urges swift government approval, emphasizing the positive impact on job creation, revenue generation, and technology transfer. The AEC sees this as a pivotal moment, emphasizing the growing role of local energy companies in shaping Africa's energy industry, with the expectation that the local consortium will successfully lead the next phase of Nigeria's energy transformation in the onshore market.