Global energy company, Shell, hopes to complete the sale of its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), “as soon as possible.”
Wael Sawan, chief executive officer of Shell, said this on Thursday during his presentation of the company’s 2023 fourth-quarter and full-year results.
“This past month, we agreed to sell our Nigerian onshore subsidiary, SPDC, subject to government approvals and other conditions. This is an important step for the company and we hope to complete the deal as soon as possible,” said Sawan.
Shell had announced on January 16 that it had agreed to sell its Nigerian onshore subsidiary, SPDC, to Renaissance, a consortium of five companies consisting of ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, for $2.4 billion.
Following this announcement, the Petroleum and Natural Gas Senior Staff Association of Nigeria rejected the sale of Shell onshore assets, saying the consortium, Renaissance, was unknown to it coupled with several allegations.
Shell said on Thursday that it would continue to consolidate SPDC until the completion of the deal and would provide loans at completion.
It said: “Under the agreed deal structure, economic performance accrues to the buyer with effect from December 31, 2021; however, Shell will continue to consolidate SPDC until control transfers at completion.
“At completion Shell will provide secured term loans of up to $1.2 billion and additional financing of up to $1.3 billion over future years. Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.”