Renaissance Africa Energy Holdings completed its $2.4 billion acquisition of Shell’s assets in Nigeria, marking a key shift in the energy sector. The deal, which faced regulatory hurdles, allows SPDC to be rebranded as Renaissance Africa Energy Company Limited, signifying Shell’s exit after nearly a century in Nigeria. The consortium includes reputable independent oil companies with significant operational capabilities in the region.
Renaissance Africa Energy Holdings has successfully completed its acquisition of Shell Petroleum Development Company of Nigeria for $2.4 billion, after obtaining all necessary regulatory approvals. This acquisition marks a pivotal shift in Nigeria’s energy sector as SPDC will be rebranded as Renaissance Africa Energy Company Limited, marking the conclusion of Shell’s nearly century-long presence in Nigeria’s onshore oil and gas sector. The sale reflects a trend of Western energy companies, including Exxon Mobil, Eni, and Equinor, retreating from Nigeria.
Initially announced in January, the deal faced delays when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) blocked it in October due to concerns over Renaissance’s demonstrated capacity to manage the assets. However, approval was granted last December by Nigeria’s oil minister, enabling the transaction to move forward.
Tony Attah, CEO of Renaissance, expressed pride in this acquisition, 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 support from the Federal Government and key stakeholders, emphasizing the deal’s potential to enhance Nigeria’s oil and gas resource development and stimulate industrial growth.
The Renaissance consortium includes ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and Waltersmith Group, in addition to international partner Petrolin. Collectively, these companies possess an asset base exceeding $3 billion, currently generating about 100,000 barrels of oil per day from 12 oil mining leases, with two modular refineries operating in the Niger Delta.
In summary, Renaissance Africa Energy Holdings has made a significant entry into the Nigerian energy sector through its acquisition of Shell’s assets for $2.4 billion. This landmark transaction signifies not only Shell’s exit from Nigeria’s onshore operations after nearly 100 years but also represents a broader trend of Western energy companies reducing their footprint in the region. With a strong network of partners and a clear vision for sustainable energy, Renaissance aims to bolster industrial growth and energy security in Nigeria.
Original Source: businessday.ng
