Renaissance Completes Acquisition of Shell’s $2.4 Billion Asset in Nigeria

Renaissance Africa Energy Holdings has acquired Shell’s Nigerian assets for $2.4 billion, marking the end of Shell’s operations in Nigeria. This acquisition received necessary regulatory approvals and is expected to enhance the local energy sector. Tony Attah, CEO of Renaissance, emphasized the ambition to drive sustainable energy and industrialization in Africa.

Renaissance Africa Energy Holdings has successfully acquired Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion, marking a significant achievement in Nigeria’s energy landscape. This deal was finalized after receiving all necessary regulatory approvals, and SPDC will now transition to the name Renaissance Africa Energy Company Limited. The acquisition signifies the end of Shell’s nearly century-long presence in Nigeria’s oil and gas sector and reflects a broader trend of Western energy companies exiting Nigeria, exemplified by similar actions from Exxon Mobil and Italy’s Eni.

Although initially announced in January, the transaction faced a roadblock in October when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) raised concerns regarding Renaissance’s capability to manage the assets. These assets encompass an estimated 6.73 billion barrels of oil and condensate, in addition to 56.27 trillion cubic feet of gas. In December, however, the approval from Nigeria’s oil minister allowed Shell to proceed with the sale to Renaissance Group.

Tony Attah, the managing director and CEO of Renaissance, expressed pride in completing the strategic transaction, stating, “The Renaissance vision is to be Africa’s leading oil and gas company, enabling energy security and industrialization in a sustainable manner.” He acknowledged the Nigerian Federal Government’s support, which facilitated this milestone that aligns with the Petroleum Industry Act’s regulations.

Attah also conveyed gratitude to significant stakeholders, including the Minister of Petroleum Resources and the CEO of the NUPRC, praising their decisive assistance in the process. This acquisition is anticipated to enhance the development of Nigeria’s oil and gas assets, fostering industrial growth in the region.

Renaissance’s consortium partners possess an asset base exceeding $3 billion, contributing to a production rate of approximately 100,000 barrels of oil daily from 12 oil mining leases. Additionally, their operation of two modular refineries in the Niger Delta illustrates their capability to generate value and innovative solutions within the energy sector.

The consortium comprises four prominent Nigerian independent oil and gas firms—ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group—alongside Petrolin, an international energy entity with a robust global trading background and a vision for pan-African development. Collectively, these companies embody significant operational expertise in the Niger Delta with a shared goal of sustainable energy management.

The acquisition of Shell Petroleum Development Company of Nigeria by Renaissance Africa Energy Holdings is a landmark event in Nigeria’s energy market, marking the end of Shell’s extensive involvement in the region. This transaction not only solidifies Renaissance’s ambition to lead Africa’s oil and gas industry but also underscores a shifting landscape as Western companies withdraw from Nigeria. The collaborative effort of prominent Nigerian firms within the consortium further highlights the potential for innovative and sustainable practices in the local energy sector.

Original Source: businessday.ng