Renaissance Africa Energy Holdings has acquired Shell’s Nigerian assets for $2.4 billion, following regulatory approvals. This acquisition concludes nearly a century of Shell’s operations in Nigeria, reflecting a trend of Western companies retreating from the region. Renaissance aims to enhance Nigeria’s energy security and industrial growth, supported by a consortium of experienced local partners.
Renaissance Africa Energy Holdings has successfully completed its acquisition of Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion, following the receipt of all necessary regulatory approvals. This acquisition represents a pivotal moment in Nigeria’s energy sector, with SPDC being rebranded as Renaissance Africa Energy Company Limited. The transaction signifies the conclusion of Shell’s nearly 100-year tenure in the Nigerian onshore oil and gas industry, coinciding with a wider retreat of Western energy companies from the region, including Exxon Mobil, Eni, and Equinor.
The acquisition of SPDC, which was initially announced in January and later stalled in October by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) due to concerns about Renaissance’s management capacity, ultimately received approval from Nigeria’s oil minister in December. This agreement involves assets containing an estimated 6.73 billion barrels of oil and condensate, along with 56.27 trillion cubic feet of gas.
Tony Attah, the CEO of Renaissance, expressed satisfaction regarding the acquisition, emphasizing the company’s vision to become Africa’s leading oil and gas firm, facilitating energy security and sustainable industrialization. He acknowledged the Federal Government’s support, which is aligned with the Petroleum Industry Act, as critical in achieving this landmark transaction.
Attah also expressed appreciation to significant stakeholders, including the Honourable Minister of Petroleum Resources and the CEO of the NUPRC, for their foresight in facilitating the acquisition. The deal is anticipated to expedite the development of Nigeria’s oil and gas resources and stimulate industrial advancement.
Renaissance’s partner companies have a substantial asset base exceeding $3 billion and produce around 100,000 barrels of oil daily from 12 operational leases. Additionally, the consortium operates two modular refineries in the Niger Delta, demonstrating their capacity to enhance value and drive innovation within the energy sector. The consortium consists of four prominent Nigerian independent oil and gas firms, namely ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group, along with Petrolin, an international energy company with a pan-African focus. Together, these partners possess extensive operational expertise and a commitment to sustainable energy development.
The successful acquisition by Renaissance Africa Energy Holdings of Shell’s assets marks a critical transition in Nigeria’s energy landscape, highlighting the shift from Western oil company dominance to local management. With the backing of key stakeholders, Renaissance aims to bolster Nigeria’s energy security and industrial capability. The consortium’s significant operational experience and commitment to sustainable practices provide a robust foundation for future growth and development in the sector.
Original Source: businessday.ng
