Shell To Divest Nigeria Onshore Oil Business For $1.3B
Portfolio Pulse from Shivani Kumaresan
Shell PLC (NYSE:SHEL) has agreed to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies, for $1.3 billion. Additional payments to Shell could reach $1.1 billion related to receivables and cash balances. The deal aims to preserve SPDC's operational capabilities and Shell will continue to support SPDC JV facilities supplying gas to Nigeria LNG. Shell's stock is trading lower by 1.13% at $63.08 in premarket.
January 16, 2024 | 2:22 pm
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Shell PLC is divesting its Nigerian onshore oil business to a consortium for $1.3 billion, with additional payments that could total $1.1 billion. The company's shares have dropped by 1.13% in premarket trading.
The divestiture of Shell's onshore oil business in Nigeria is a significant move that aligns with the company's strategy to exit onshore oil production in the Niger Delta. The short-term negative impact on the stock price, as indicated by the premarket trading, suggests that investors may have concerns about the sale or are reacting to the news of the divestiture. However, the long-term strategic focus on deepwater and integrated gas positions could be positive for the company.
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IMPORTANCE 75
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