Shell sells Nigerian onshore subsidiary but remains in offshore sector
Shell sold its Nigerian onshore subsidiary but remains active in the offshore sector
(Reuters) - Shell, an international energy and petrochemical company, is selling its onshore business in Nigeria but is not leaving the country, contrary to claims in some social media posts.
“Shell just announced they leaving Nigeria. What is this white people seeing that we are not seeing yet?”, a user of social media platform X wrote on Jan. 16, opens new tab.
“Shell exits Nigeria, sells off its onshore subsidiary”, wrote a Facebook user sharing a screenshot, opens new tab of the company’s post on platform X, opens new tab which reads: “Shell has reached an agreement to sell its Nigerian onshore subsidiary, SPDC. Completion of the transaction is subject to approvals by the Federal Government of Nigeria”.
Shell’s post, opens new tab links to a media release, opens new tab which quotes Zoë Yujnovich, Shell’s Integrated Gas and Upstream director, saying the sale aligns with a previously announced intent to focus future investment in Nigeria on its Deepwater and Integrated Gas positions.
“Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy,” Yujnovich added.
A spokesperson for Shell said the company “is not leaving Nigeria but is selling its onshore oil subsidiary, SPDC” and pointed to its media release, opens new tab and related Frequently Asked Questions, opens new tab (FAQs) about the sale.
In the FAQs, the company addressed what is excluded from the announcement, saying it has three other main businesses in Nigeria, opens new tab that are outside the scope of this transaction: Shell Nigeria Exploration and Production Company Limited (SNEPCo), Shell Nigeria Gas Limited (SNG) and Daystar Power Group.
The company has sought to sell its onshore Nigerian oil and gas business since 2021, and has said this was part of a drive to reduce its carbon emissions. But Shell has also said that it will remain active in Nigeria's offshore sector.
Nigeria’s junior oil minister said on Jan. 18 that the country is set to approve the company’s decision to sell the onshore assets.
VERDICT
Missing context. Shell sold its Nigerian onshore subsidiary but remains active in the offshore sector.
