Shell has sold its onshore oil assets in the Niger Delta, while simultaneously affirming its long-term commitment to Nigeria. On January 16, Shell announced the sale of its onshore oil assets to a consortium of local companies for over $1.3 billion (R25 billion). The company had maintained an onshore oil presence in Nigeria for almost a century prior to the sale.

The transaction, which is still awaiting government approval, will leave the business in the hands of ND Western, Aradel Energy, First E&P, Petrolin and Waltersmith, which are all Nigerian-based companies. The consortium is buying the business under the name, Renaissance Africa, under managing director Tony Attah, a former Shell employee.

The Shell Nigeria media team addressed rumours that the company is starting to remove itself from the Nigerian energy industry, in an interview with local Nigerian publication Punch. The publication reported that Shell hopes to “remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy.”

Shell continues to operate Shell Nigeria Exploration and Production Company Limited and Shell Gas Limited. The company said it plans to focus on “deep water and integrated gas positions” in Nigeria.

Shell’s intention to sell their Nigerian onshore operations was announced three years ago, but the sale was put on hold during a Supreme Court case related to pollution allegations. The court upheld Shell’s appeal against the ruling and an agreement was reached between Shell and Renaissance Africa on Tuesday.

Shell’s onshore oil operations in Nigeria have been subject to controversy, including accusations of human-rights violations. The company has been accused by local communities of polluting the environment through oil spills. Shell, in response, said the spills were caused by damage due to oil theft.