Shell sells stake, signs gas deal in Nigeria

LAGOS, January 18, 2021 – Shell Nigeria has completed the sale of its 30% stake in OML 17 to local player TNOG Oil & Gas in a deal worth USD 533 million.

Shell announced the deal on Friday, saying an initial USD 453 million was paid upon the deal’s completion.

TNOG’s shares in the licence will total 45% following acquisitions from Shell, Total and Eni, the local firm’s owner said in a separate statement.

Meanwhile, Shell Nigeria Gas (SNG) announced a 20-year supply deal with Nigerian Gas Marketing Corporation on Sunday.

The deal is part of ongoing efforts to expand domestic gas utilisation and enhance industrialisation in the country and will involve an extension of SNG’s distribution network to Badagry to serve a new market in the border community.

“This agreement will enable local industries to thrive and create employment opportunities for Nigerians,” SNG managing director Ed Ubong said. “We look forward to continuing to grow domestic gas distribution to industries and manufacturing plants in Ogun State and other parts of Nigeria while unleashing the industrial potential of Badagry.”

Read our latest insights on: