Shell said it has reached an agreement to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance.

Renaissance is a consortium of five firms made up of four exploration and production companies based in Nigeria and also an international energy group.

Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions, Shell said in a Tuesday statement on its website.

Transaction will preserve SPDCs operating capabilities for the benefit of a joint venture. The transaction has been designed to preserve the full range of SPDCs operating capabilities following the change of ownership. This includes the technical expertise, management systems, and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).

It, however, said, SPDCs staff will continue to be employed by the company as it transitions to new ownership.

According to Shell, with the competition, the company will retain its duty in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help the country achieve maximum value from NLNG.

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, Shells Integrated Gas and Upstream Director Zoë Yujnovich said.

It is a significant moment for SPDC, whose people have built it into a high-quality business over many years. Now, after decades as a pioneer in Nigerias energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.

Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the countrys growing energy needs and export ambitions in areas aligned with our strategy. (Channels TV)