Renaissance completes acquisition of Shell's assets in Nigeria

Renaissance Africa Energy Holdings announced that it has successfully completed the acquisition of the entire equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).

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The company, in a statement on Thursday, said this follows the signing of a sale and purchase agreement with Shell in January 2024, and obtaining all regulatory approvals required for the transaction.

“Renaissance Africa Energy Holdings today announced that it has successfully completed the landmark transaction between itself and Shell for the acquisition of the entire (100 per cent) equity holding in the Shell Petroleum Development Company of Nigeria (SPDC),” the statement said.

Going forward, it said SPDC will be renamed as Renaissance Africa Energy Company Limited.

The statement explained that Renaissance Africa Energy Holdings is a consortium consisting of four successful Nigerian independent oil and gas companies: ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group, each with considerable operations experience in the Niger Delta, and Petrolin, an international energy company with global trading experience and a pan African outlook.

Managing Director/Chief Executive Officer of Renaissance, Tony Attah, said: “We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be Africa’s leading oil and gas company, enabling energy security and industrialisation in a sustainable manner. We and our shareholder companies are therefore pleased that the federal government has given the green light for this milestone acquisition in line with the provisions of the Petroleum Industry Act.

“We extend our appreciation to the Honourable Minister of Petroleum Resources, and the Chief Executive Officer of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and the Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPC Ltd) for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as a strategic accelerator for the country’s industrial development.”

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In January 2024, the Nigerian unit of 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.

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.

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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.

In October 2024, SPDC said it is not leaving Nigeria but only shifting its portfolio and further investments to deep offshore.

Last December, SPDC received ministerial consent to sell its Nigeria onshore oil business to Renaissance Africa Energy Company Limited.