Shell assures workers as it sells SPDC to Renaissance for $2.4bn

Dutch oil giant, Shell has assured workers that their jobs are safe as it reaches an agreement to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance For $2.4bn.

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 SPDC’s operating capabilities for the benefit of a joint venture. The transaction has been designed to preserve the full range of SPDC’s 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)”.

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It, however, said, “SPDC’s 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,” Shell’s Integrated Gas and Upstream Director Zoë Yujnovich said.

By Babajide Okeowo

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