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The buying consortium is Renaissance, which consists of ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, Shell said. After an initial payment of USD 1.3 billion, the London-based energy giant said it would receive an additional USD 1.1 billion
Shell has agreed to sell its onshore business in Nigeria’s Niger Delta to a consortium of companies in a deal worth USD 2.4 billion, according to reports. The buying consortium is Renaissance, which consists of ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, Shell said. After an initial payment of US$1.3 billion, the London-based energy giant said it would receive an additional US$1.1 billion.
The assets that Shell is selling are largely owned by the Nigerian government’s national oil company NNPC, which holds a 55% stake. To finalize the agreement, the government must give its approval. Shell operates the assets and owns a 30% stake, with the remaining share held by France’s TotalEnergies at 10% and Italy’s Eni at 5%. The assets include 15 onshore mining leases and three shallow-water operations, the company said.
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Nigeria heavily depends on the Niger Delta’s petroleum resources for its earnings. However, pollution from oil and natural gas production has prevented residents from accessing clean water, hurt farming and fishing, and heightened tensions.
