Shell’s withdrawal opens doors for Nigerian firms

Oil major's departure from the Nigerian onshore oil business offers opportunities for local firms, but could also leave a financing gap

On 16 January, Shell announced an agreement to sell its Nigerian onshore oil and gas subsidiary, Shell Petroleum Development Company of Nigeria (SPDC), to a consortium of local firms for up to $2.4b. The deal aligns with Shell’s previously stated intention to withdraw from onshore oil production in the Niger Delta. The company's strategy is to streamline its portfolio and concentrate future Nigerian investments in deepwater and gas, stated Zoe Yujnovich, Shell's integrated gas and upstream director. The major has been active in Nigeria since the 1930s. The purchasing consortium, Renaissance Africa Energy — comprising ND Western, Aradel Holdings, the Petrolin Group, First Exploration and Petr