How Shell is still benefiting from offloaded Niger Delta oil assets

Shell’s sale of its onshore oil operations in Nigeria to Renaissance Africa Energy Company last year was initially seen as a significant step toward improving its climate credentials, notably helping Shell report zero routine gas flaring. However, new data reveals that Shell continues to benefit commercially from these assets despite the divestment. Since March 2025, Shell has traded approximately 11 million barrels of oil from the Niger Delta’s Forcados and Bonny terminals, facilities included in the Renaissance deal, generating an estimated $759 million in revenue based on average Brent crude prices. The company also chartered tankers to transport this oil globally, maintaining a commercial presence in the region’s oil trade. This ongoing involvement suggests that Shell’s exit from Nigerian onshore operations may be more complex than a straightforward divestment. Industry experts note that while Shell no longer operates these facilities, it may have arrangements with Renaissance to continue marketing the oil using its established trade networks. Shell’s shipping and chartering division reported a profit increase to £24.8 million in 2024, underscoring the financial benefits it still derives from the region. Both Shell and Renaissance declined to comment on the specifics of their commercial relationship following the sale. The revelations raise important questions about how major energy companies portray their climate progress and manage the environmental legacies of assets they sell, particularly in countries like Nigeria where oil production has long-term ecological and social impacts. Shell’s onshore fields, active for decades, were sold for $2.4 billion to a consortium aiming to double production by 2030, highlighting ongoing fossil fuel development in the Niger Delta. Meanwhile, gas flaring at some of these sites has reportedly increased since the divestment, complicating Shell’s narrative of climate improvement. This case underscores the challenges in assessing the true environmental impact of asset sales in the oil sector, where operational control and commercial benefits may diverge. It also spotlights the broader issue of accountability for climate and environmental outcomes after multinational companies transfer ownership of fossil fuel infrastructure to local or regional entities.