Shell Petroleum Development Company of Nigeria Limited (SPDC) has received ministerial consent to sell its Nigeria onshore oil business to Renaissance Africa Energy Company Limited.
Renaissance Africa Energy Company Limited disclosed this in a statement on Wednesday, saying the approval marks a significant step forward from the announcement of the Sale and Purchase Agreements.
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“Renaissance Africa Energy Company Limited is pleased to announce that the Minister of Petroleum Resources has granted his consent to the sale of the Shell Petroleum Development Company (SPDC) to Renaissance. This approval marks a significant step forward from the announcement of the Sale and Purchase Agreements in January 2024,” the statement said.
In January, the Nigerian unit of London-based oil supermajor Shell Plc struck a deal with a consortium of five companies, setting the scene for the latter to acquire its onshore business in the country.
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The deal was sealed after the company encountered years-long setbacks in its efforts to cede ownership of the assets.
SPDC will get up to $2.4 billion from the transaction including an initial sum of $1.3 billion. A further payment of $1.1 billion relating to prior receivables and cash balances is expected at the consummation of the deal, Shell said at the time.
The deal is a relief for Shell, which has sought to offload the assets since 2021 because running them has been complicated by sabotage, theft and spills, some of which have sparked litigations and environmental liabilities.
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Earlier in October, SPDC said it is not leaving Nigeria but only shifting its portfolio and further investments to deep offshore.
The Managing Director of the Shell Petroleum Development Company and Country Chair of Shell Companies in Nigeria, Osagie Okunbor, explained that the company is concentrating more on the deepwater, where it has a significant technological and financial advantage.
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