Shell is selling its onshore oil business in Nigeria.

Shell announced that it has signed a deal with Renaissance to sell the Shell Petroleum Development Company of Nigeria Limited (SPDC), its onshore subsidiary in Nigeria.

Renaissance is a group of five enterprises consisting of one multinational energy organization and four Nigerian exploration and production companies.

Shell posted a statement on its website on Tuesday that stated, “Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.”

SPDC’s operating skills will be preserved during the transaction for the benefit of a joint venture. The purpose of the deal is to maintain SPDC’s whole operational capacity after the ownership transition. For all of the enterprises involved in the SPDC Joint Venture (SPDC JV), SPDC implements management systems, procedures, and technical know-how.

“SPDC’s staff will continue to be employed by the company as it transitions to new ownership,” it stated, nonetheless.

Shell claims that despite the competition, it will continue to uphold its obligation to assist the management of SPDC JV facilities, which provide a significant amount of the feed gas for Nigeria LNG (NLNG), in order to support the nation in obtaining the most value possible from NLNG.

Shell’s Integrated Gas and Upstream Director, Zoë Yujnovich, stated, “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.”

For SPDC, a company whose employees have spent years transforming it into a premier enterprise, this is a momentous occasion. Now, after decades of leading the way in Nigeria’s energy industry, SPDC will begin its next chapter under the direction of a capable, aspirational consortium led by Nigerians.

Shell believes Nigeria has a promising future and that the country’s energy sector will attract foreign investment. In sectors that are consistent with our plan, we will keep assisting the nation in meeting its expanding energy demands and export goals.