Victor EzejaShell has finally completed the sale of its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance Africa Energy Holdings.
In separate statements on Thursday, both energy firms confirmed completion of the deal worth about $2.4 billion.
Join our WhatsApp ChannelWith the completion of the acquisition deal, Renaissance now controls SPDC’s 30% stake in the SPDC Joint Venture with the Nigerian National Petroleum Corporation (NNPC) and others, according to Shell.
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In the joint venture, NNPC has 55% stake, Total Exploration and Production Nigeria Ltd, 10%, and Agip Energy and Natural Resources (Nigeria) Limited 5%.
“The divestment of SPDC aligns with Shell’s intent to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and a focus of future disciplined investment in its Deepwater and Integrated Gas positions,” Shell stated in a statement released on Thursday.
The energy giant had in January 2024, announced its intention to divest its onshore oil asset in Nigeria to Renaissance and focus on offshore oil and gas exploration.
It said then that completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.
The completion of the divestment also marks the end of Shell’s nearly 100 years of exploration activities in Nigerian onshore oil and gas sector.
It is a part of a general move by Western energy companies withdrawing from Nigeria. Some of them include ExxonMobil, Italy’s Eni, and Norway’s Equinor.
Renaissance is a consortium of five companies comprising four exploration and production companies – ND Western, Aradel Energy, First E&P, Waltersmith – based in Nigeria – and the international energy group, Petrolin.
In a statement on Thursday confirming completion of the acquisition of the assets, Renaissance Energy managing director and CEO, Tony Attah said: “We are pleased that the Federal Government has given the green light for this milestone acquisition, in line with the provisions of the Petroleum Industry Act.”
Mr Attah expressed gratitude to all stakeholders who contributed to the success of the deal.
He commended Minister of Petroleum Resources, the CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the Group CEO of the Nigeria National Petroleum Company Limited (NNPCL), for their support in facilitating the transaction, which according to him, would enhance the development of Nigeria’s oil and gas resources and drive industrial growth.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
