The completion of the transaction is contingent on approvals from the Federal Government of Nigeria and other conditions, as stated in Shell’s Tuesday announcement 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)”.

Despite the change in ownership, SPDC’s staff will remain employed by the company during the transition.

Shell outlined its commitment to supporting the management of SPDC JV facilities, playing a crucial role in supplying feed gas to Nigeria LNG (NLNG) to maximize value for the country.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, expressed that the agreement is a significant step for Shell in Nigeria, aligning with the previously announced intention to exit onshore oil production in the Niger Delta.

“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,”

This move aims to streamline Shell’s portfolio, focusing future investments in Nigeria on Deepwater and Integrated Gas positions.

Yujnovich added, “Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy.”