Shell to sell onshore oil business in Nigeria for $1.3bln

Shell Plc agreed to sell its Nigerian onshore oil assets for $1.3 billion to a group of local companies, Bloomberg reported on Tuesday.

ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin are part of the consortium that purchased the asset, known as Renaissance.

The oil company would achieve its long-term objective of removing itself from a difficult operating environment in the Niger Delta region if the transaction was authorised by the government.

In addition to the original payment, Shell stated that it would get up to $1.1 billion in further payments.

“This agreement marks an important milestone for Shell in Nigeria,” Zoe Yujnovich, integrated gas and upstream director, said in a statement on Tuesday. The deal is “simplifying our portfolio and focusing future disciplined investment in Nigeria on our deepwater and integrated gas positions”