Energy giant Shell has agreed to sell its Nigerian onshore oil and gas assets for $2.4 billion, signaling a shift from onshore oil production.

The consortium, headed by the Nigerian independent energy firm Renaissance Oil and comprising ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin as members, represents a notable shift in Nigeria’s oil industry landscape.

The sale encompasses Shell’s 49 percent ownership in the SPDC Joint Venture, responsible for managing over 30 onshore oil and gas fields along with its investment in the Forcados and Bonny export terminals.

Here is a breakdown of how the journey started:

1936– Shell opens its shells to Nigeria: Shell enters Nigeria with Shell D’Arcy as the first Shell company in Nigeria. It begins its pioneering role in onshore, shallow, and deep water oil exploration and production.

1938– However, Shell did not start operations until 1938, when Shell D’Arcy received an exploration license to search for oil throughout Nigeria.

January 1956- The first success story of many: Shell D’Arcy successfully drilled its first well at Oloibiri.

April 1956– Time for a rebrand: Shell D’Arcy changed its name to Shell BP Petroleum Development Company of Nigeria Limited.

1958– Shell receives the first oil shipment from Nigeria.

1961– Shell commissioned its Bonny Terminal.

1971– Shell commissioned Forcados Terminal.

1973– Shell received its first participation agreement, where the FG acquired 35% shares in oil companies.

1974– Shell received its second participation agreement when the FG increased equity to 55%

July 1979- Shell received its third participation agreement (through NNPC), increasing equity to 60 percent.

August 1979– Shell received its fourth participation agreement; BP’s shareholding nationalized; NNPC = 80 percent, Shell = 20 percent.

1979– Another rebrand: Shell BP Petroleum Development Company of Nigeria Limited changed its name to Shell Petroleum Development Company of Nigeria (SPDC).

1984– SPDC signs an agreement consolidating NNPC/Shell Joint Venture.

1986– SPDC signed Memorandum of Understanding (MOU).

1989– SPDC received its Fifth Participation Agreement; NNPC = 60%, Shell = 30 percent, Elf = 5 percent, Agip = 5%.

1991– SPDC signs Memorandum of Understanding and Joint Venture Operating Agreement.

April 1993– SPDC signs Production Sharing Contracts and begins SNEPCO.

July 1993– SPDC receives Sixth Participation Agreement; NNPC = 55%, Shell = 30%, Elf = 10%, Agip = 5%

April 1995– SNEPCO begins drilling its first Exploration well at Bonga (Nigeria’s first deepwater oil field).

November 1995– SPDC established Shell Nigeria Gas Company (SNG).

2002- SPDC commences production from the EA field.

2003- SPDC achieved 1 million + barrels of oil per day (bpd) from its operations.

2004- The New SPDC: SPDC underwent a restructuring exercise and placed Nigerians in top management positions.

January 2005- After the launch of the new SPDC, Basil Omiyi became the first Nigerian managing director.

September 2005- Basil Omiyi became Nigeria’s country chair and oversees all Shell companies in Nigeria and Shell interests.

November 2005- SNEPCo began oil and gas production at Bonga.

February 2006- SPDC halted activities in the western Niger Delta as a result of an increase in terrorist attacks. Security concerns also led to the suspension of production at EA.

June 2006- The Nigerian Shell Companies committed to Nigeria Content Development, which aims to increase the involvement of Nigerian companies in all operations. This will boost the economy and help Nigeria improve its industrial capabilities and competencies.

June 2008- Mutiu Sunmonu was appointed as the Managing Director of SPDC.

March 2008- In the deepwater oil and gas activities of Nigeria, the first 4D seismic acquisition was accomplished in the Bonga field, operated by SNEPCo, 120km southwest of the Niger Delta.

October 2008- The 240 Million standard cubic feet per day (MMscf/d) OKOLOMA Gas Plant began supplying the Afam VI Power Plant with the 190MMscf/d base load gas required.

2009- The Afam VI Combined Cycle Power Plant commenced the supply of 442 Megawatts (MW) of power, providing additional stability to the National Power Grid.

2010- The Gbaran Ubie integrated oil and gas project produced the first gas in Bayelsa state.

2011- SPDC was voted best company in innovative Corporate Social Responsibility (CSR) at the Social Enterprise Report and Awards (The SERAs).

August 2012- SPDC pioneered manufacture of first made-in-Nigeria carbon steel pipes.

November 2012- SPDC completed 30percent interest in Oil Mining Lease 30 (OML30) in the Niger Delta to Shoreline Natural Resources Limited (Shoreline).

2013- SPDC JV (Joint Venture) shut down the Obigbo plant in Rivers state due to encroachment on the right-of-way of gas pipelines.

2014- Shell Nigeria Exploration and Production Company Ltd (SNEPCo) began oil production from the first well at the Bonga North West deepwater development.

2015- Osagie Okunbor assumed office as the new Shell managing director, replacing Mutiu Sunmonu, who retired after 36 years of service.

March 2016- SPDC increased gas production in Niger Delta.

November 2016- NNPC and Shell signed a Memorandum of Understanding (MOU) with Nigeria banks for $2.2 billion contractor financing support.

December 2018- SNEPCo’s Bonga announced hitting the 800 million barrels mark.

December 2018- Shell signed a gas supply agreement for the Aba power project.

2019- Shell announced an expansion of domestic gas distribution in Nigeria.

2020- SPDC completed the final phase of its 20-kilometer (km) domestic gas pipeline expansion project in Abia State, connecting Agbor Hill, Osisioma, and Araria industrial zones.

January 2021- Shell completed the sale of its 30percent interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta and associated infrastructure to Trans Niger Oil and Gas Ltd (TNOG).

August 2021- Shell announced Elohor Aiboni as the Managing Director of its Nigeria deep-water business, Shell Nigeria Exploration and Production Company Limited (SNEPCo).

2022- SPDC completed the handover of the lease and operatorship of Oil Mining Lease 11 (OML 11) in 2022.

December 2022- Shell acquired Daystar Power Group (Daystar Power), which provides solar power to commercial and industrial businesses.

March 2023- The Bonga FPSO delivered 1 billion barrels of oil export, a significant milestone.

July 2023- Shell appointed Ralph Gbobo as managing director of its gas distribution company, Shell Nigeria Gas Limited.

2024- Shell sells its Nigerian onshore oil and gas subsidiary in Nigeria for $2.4 billion.