In response to speculations circulating on social media about Shell PLC exiting Nigeria after selling its onshore business in the Niger Delta, the energy giant clarified its position, stating that it remains committed to the country.
On Tuesday, Shell announced that it had reached an agreement to sell its onshore oil business in the Niger Delta, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance Africa Energy. The announcement sparked various reactions, with some interpreting it as Shell’s exit from Nigeria.
However, the Shell Nigeria media team addressed the concerns, emphasizing that the divestment from SPDC aligns with its previously communicated strategy to “exit onshore oil production in the Niger Delta and to focus future investment in Nigeria on our Deepwater and Integrated Gas positions.”
Contrary to the notion of a complete exit, Shell emphasized its intention “to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy.”
Shell disclosed that it has three other main businesses in Nigeria unaffected by the SPDC transaction. These include Shell Nigeria Exploration and Production Company Limited, operating in the deepwater Gulf of Guinea; Shell Nigeria Gas Limited, providing gas to domestic industrial and commercial customers; and Daystar Power Group, offering integrated solar power solutions across West Africa.
Additionally, Shell holds a 25.6% interest in Nigeria Liquefied Natural Gas (NLNG), which produces and exports liquefied natural gas globally. The company emphasized that its interest in NLNG is outside the scope of the SPDC transaction.
Addressing concerns about the fate of current Shell employees in Nigeria, the company assured that there is no expected loss of employment. Staff from SPDC will continue their employment as the company transitions to new ownership.
Shell’s reaffirmation of its commitment to Nigeria underscores its strategic focus on specific sectors aligned with its global business strategy, assuring continuity in its contribution to the country’s energy landscape.