A leading international oil company, Shell, has agreed to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited, SPDC, to Renaissance, a consortium of five companies based in Nigeria, and an international energy group, for up to $2.4 billion.

The company disclosed this in a statement on Tuesday.

The development will bring an end to the British oil giant’s core operation in Nigeria years after its formation in 1979.

However, the company stated that completion of the transaction is subject to approvals by the Federal Government of Nigeria, who has a 55 per cent stake, and other conditions.

Explaining the implication of the development, Shell noted that the transaction had been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership. These include the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).