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British energy major Shell is poised to conclude nearly a century of onshore oil and gas operations in Nigeria, having agreed to sell its Nigerian subsidiary to a consortium of five mostly local companies for up to 2.4 billion U.S. dollars.

The British energy giant initiated Nigeria’s oil and gas business in the 1930s and has grappled with onshore oil spills due to theft, sabotage, and operational issues, resulting in costly repairs and legal battles.

While Shell has sought to divest its Nigerian onshore assets since 2021, it will maintain its presence in the more lucrative and less problematic offshore sector, according to AFP.

The sale involves The Shell Petroleum Development Company of Nigeria Limited (SPDC), valued at 1.3 billion U.S. dollars, with an additional payment of up to 1.1 billion U.S. dollars at completion.

Reuters reports that the Renaissance consortium, consisting of local oil exploration and production companies ND Western, Aradel Energy, First E&P, Waltersmith, and Swiss-based Petrolin, will take over SPDC’s operations pending Nigerian government approval.

Despite its withdrawal from onshore activities, Shell remains committed to Nigeria’s energy sector particularly in offshore, gas, and liquefied natural gas projects. Aiming to attract more foreign investment under President Bola Ahmed Tinubu’s economic reforms, Nigeria presents investment opportunities with Shell expressing a positive outlook for the country’s energy needs and export ambitions.