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Dangote: SHELL To Sell SPDC, Plan Exist Nigeria

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Could be this Dangote’s Opportunity?

Leading global oil giant Shell has agreed to sell Shell Petroleum Development Company of Nigeria Limited, SPDC, its onshore Nigerian subsidiary, to Renaissance, an international energy organization and a partnership of five Nigerian companies, for as much as $2.4 billion.

This was revealed by the business in a statement on Tuesday.
The Federal Government of Nigeria, which owns a fifty-five percent stake in the deal, must approve it, among other requirements, according to the business.

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Shell clarified the implications of the development by stating that the acquisition was intended to maintain SPDC’s entire operational range after the ownership transition. These consist of the management methods, procedures, and technical know-how that SPDC employs on behalf of all the companies in the SPDC Joint Venture (SPDC JV).

The development will bring an end to the British oil giant’s core operation in Nigeria years after its formation in 1979.

The statement also made it clear that SPDC employees will remain with the company after it changes ownership.

In order to help Nigeria get the most value from NLNG, the business stated that it will continue to assist the management of SPDC JV facilities that provide a significant amount of the feed gas to Nigeria LNG and NLNG.

Speaking on the business’s future course of action, Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, stated that the company will concentrate investment on deepwater and integrated gas operations.

In keeping with our previously stated plan to cease onshore oil production in the Niger Delta, streamline our holdings, and concentrate future conservative investment in Nigeria on our Deepwater and Integrated Gas assets, this deal represents a significant turning point for Shell in Nigeria.

For SPDC, a company whose employees have spent years transforming it into a premier enterprise, this is a momentous occasion. Now, after decades of leading the way in Nigeria’s energy industry, SPDC will begin its next chapter under the direction of a capable, aspirational consortium led by Nigerians.

Shell believes Nigeria has a promising future and that the country’s energy sector will attract foreign investment. In sectors that are consistent with our plan, we will keep assisting the nation in meeting its expanding energy demands and export goals.

 

 

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