Shell to Sell Nigeria Onshore Oil Business for Up to $2.4 Billion

Shell has agreed to sell its Nigerian onshore oil subsidiary for up to $2.4 billion, making good on a promise to exit what was for decades one of its most dependable cash cows but in recent years has become a big drag on its reputation.

The London-based energy major said Tuesday that it will receive $1.3 billion initially for Shell Petroleum Development Company of Nigeria, with the buyer—a consortium of five companies—paying up to an additional $1.1 billion, mainly relating to prior receivables and cash balances. The majority is expected to be paid at completion of the deal.