Shell exits Nigerian onshore oil sector as SPDC deal delivers $2.02bn to Nigeria

Nigeria has received about $2.02 billion in proceeds linked to Shell’s divestment of its onshore oil subsidiary, Shell Petroleum Development Company (SPDC), following the completion of the asset transfer to Renaissance Africa Energy Holdings, a consortium of indigenous and international energy firms.

The payment is part of the broader completion of Shell’s long-anticipated exit from Nigeria’s onshore oil operations, which was finalized after regulatory approvals and restructuring of the SPDC joint venture.

Shell’s divestment marks the end of nearly a century of onshore operations in the Niger Delta, as the company shifts its focus toward offshore and deepwater projects. The SPDC joint venture, which includes the Nigerian National Petroleum Company Limited (NNPC Ltd) with a majority stake, has now fully transitioned operational control of key onshore assets to Renaissance Africa Energy Holdings.

The transaction follows a wider wave of international oil majors scaling down onshore exposure in Nigeria due to operational risks, environmental concerns, and strategic shifts toward lower-carbon and deepwater investments. Shell’s exit had earlier been valued at around $2–2.4 billion, depending on asset adjustments and regulatory conditions.

The SPDC assets include major oil infrastructure across the Niger Delta, including pipelines and flowstations that have historically contributed significantly to Nigeria’s crude output.

Renaissance Africa Energy Holdings, made up of Nigerian exploration companies and partners now assumes responsibility for managing production and addressing longstanding operational and environmental challenges in the region.

The development is seen as a major milestone in Nigeria’s push to increase indigenous participation in the upstream oil sector.