Italian energy group Eni is moving ahead with plans to sell its 5 percent stake in a key Nigerian oil joint venture, marking the latest step in a broader shift by international oil majors away from onshore operations in Nigeria.
The company disclosed the development in written responses to shareholder questions ahead of its annual general meeting scheduled for May 6, confirming that a sale process is underway but withholding details of the prospective buyer and the value of the deal.
Eni said any potential acquirer would be subject to a comprehensive due diligence process, including an assessment of reputational risks — a factor that has become increasingly important in transactions involving oil assets in Nigeria due to longstanding concerns around environmental damage, litigation and security challenges.
The stake relates to the Renaissance joint venture, formerly known as the Shell Petroleum Development Company joint venture, one of the country’s प्रमुख onshore oil and gas operations. The JV has historically been a cornerstone of Nigeria’s petroleum sector, involving partnerships between international oil companies and the state.
Although Eni did not name the interested buyer, Nigerian and foreign-owned energy firms are understood to have submitted bids. Among them, Sterling Oil Exploration and Energy Production Company has been widely cited in industry reports as a frontrunner in the bidding process.
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The planned divestment underscores a broader trend across Nigeria’s oil sector, where international oil companies have been steadily reducing their exposure to onshore and shallow-water assets. Companies including Shell, ExxonMobil and TotalEnergies have all pursued or considered similar moves in recent years.
These shifts have been driven by a combination of factors, including oil theft, pipeline vandalism, regulatory uncertainty and mounting environmental liabilities in the Niger Delta. At the same time, global energy companies are reallocating capital towards deepwater projects, gas developments and lower-carbon investments in line with energy transition strategies.
For Nigeria, the exit of international players from onshore assets has created opportunities for indigenous companies and regional operators to expand their presence. Local firms are often seen as better positioned to navigate community relations and security dynamics, although they may face challenges in accessing financing and managing large-scale operations.
Analysts say Eni’s decision to sell its minority stake aligns with this evolving landscape and could further accelerate the transfer of upstream assets into local hands. However, they caution that successful transitions will depend on maintaining production levels, ensuring environmental compliance and securing investment for asset development.
The Nigerian government has generally supported such divestments, provided that buyers meet regulatory requirements and demonstrate technical and financial capacity. Authorities are also keen to ensure that asset transfers do not exacerbate environmental or social risks in oil-producing regions.
Eni’s emphasis on reputational due diligence suggests heightened sensitivity to these concerns, particularly as scrutiny intensifies from investors, regulators and civil society groups over environmental, social and governance (ESG) standards.
While the company did not provide a timeline for completing the transaction, it indicated that further updates would be communicated as the process progresses.
The outcome of the sale will be closely watched as a barometer of investor appetite for Nigerian oil assets and the broader trajectory of the country’s energy sector, which remains heavily reliant on hydrocarbons despite ongoing efforts to diversify the economy.
If completed, the deal would mark another step in the gradual reshaping of Nigeria’s oil industry, with implications for production, investment flows and the balance of power between international majors and domestic players.
