Renaissance will pay Shell up to another $1.1 billion, primarily relating to prior receivables and cash balances in the business, with the majority expected to be paid at completion of the deal, which is subject to approvals by the Federal Government of Nigeria and other conditions.

The transaction has been designed to preserve the full range of SPDC‘s operating capabilities following the change of ownership. This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC joint venture.

Following completion, Shell will retain a role in supporting the management of the SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG.

“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream director.

“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.”