Shell to exit Nigeria's onshore oil after nearly a century

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00:00 Shell has agreed to sell its onshore oil and gas business in Nigeria for up to $2.4 billion

00:07 U.S. dollars, after nearly a century of operations.

00:12 The British energy major said on Tuesday that it would sell the Shell Petroleum Development

00:16 Corporation of Nigeria Limited to Renaissance, a consortium of five mostly local companies.

00:23 The deal is made up of an initial consideration of $1.3 billion, with the buyers making an

00:27 additional payment of up to $1.1 billion at completion.

00:33 Shell has been active in the West African country since the 1930s, but it has for years

00:39 struggled with hundreds of oil spills at its onshore operations as a result of theft, sabotage

00:45 and operational issues.

00:47 That's led to costly repairs and high-profile lawsuits.

00:54 Shell said Renaissance will take over responsibility for dealing with spills, theft and sabotage.

01:00 However, Nimo Bassi, executive director of Nigerian advocacy group Health of Mother Earth

01:05 Foundation, said that Shell must own up to its responsibility.

01:10 That he said means full payment for the remediation and restoration of the polluted areas as well

01:16 as reparations to the host communities, adding, "They cannot walk away from the virtually

01:21 irreparable harm they have caused."

01:27 SPDC Limited operates and has a 30% stake in the SPDC Joint Venture that holds 18 onshore

01:34 and shallow mining leases.

01:37 Shell's resources in SPDC reached around 458 million barrels of oil equivalent by the end

01:43 of 2022.

01:47 The sale to Renaissance requires the approval of the Nigerian government.

01:51 Shell will also remain active in Nigeria's more lucrative and less problematic offshore

01:56 sector.

01:59 The exit is part of a broader retreat by Western energy companies from Nigeria, as they focus

02:04 on newer, more profitable operations.

02:07 ExxonMobil, Italy's Eni and Norway's Equinor have struck deals to sell assets in the country

02:13 in recent years.

02:14 (projector whirring)