Renaissance Africa Energy Holdings has completed its $2.4 billion acquisition of Shell Petroleum Development Company of Nigeria, rebranding as Renaissance Africa Energy Company Limited. This move marks the end of Shell’s long presence in Nigeria and reflects a trend of Western companies withdrawing from the region. The acquisition is expected to enhance Nigeria’s oil and gas development, supported by key stakeholders.
Renaissance Africa Energy Holdings has finalized its acquisition of Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion, marking a significant achievement in Nigeria’s energy landscape. This acquisition, subject to regulatory approvals, leads to SPDC’s rebranding as Renaissance Africa Energy Company Limited and concludes Shell’s nearly century-long operations in Nigerian oil and gas.
The acquisition is part of a broader withdrawal of Western energy companies from Nigeria, with notable retreats from Exxon Mobil, Eni, and Equinor. Initially announced in January, the transaction faced regulatory challenges from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October due to concerns about Renaissance’s capacity to manage the assets, which contain approximately 6.73 billion barrels of oil and 56.27 trillion cubic feet of gas.
After addressing regulatory requirements, approval from Nigeria’s oil minister was granted last December, clearing the path for the sale. Tony Attah, CEO of Renaissance, expressed pride in achieving this strategic acquisition and emphasized the company’s vision of becoming Africa’s leading oil and gas entity, promoting energy security and sustainable industrialization.
Attah acknowledged the support of critical stakeholders, including the Minister of Petroleum Resources and the NUPRC CEO, for their foresight in facilitating the acquisition that is anticipated to enhance Nigeria’s oil and gas development. Renaissance’s partner companies, which have an asset base exceeding $3 billion, are collectively producing around 100,000 barrels of oil daily.
The consortium includes ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, Waltersmith Group, and the international energy company Petrolin, bringing vast operational experience and a commitment to sustainable energy development in the Niger Delta.
In conclusion, Renaissance Africa Energy’s acquisition of Shell’s $2.4 billion assets signifies a transformative development in Nigeria’s energy sector. This strategic move not only facilitates Renaissance’s ambitions for energy security and industrial growth but also reflects the changing landscape of oil production in Nigeria, as Western companies continue to withdraw. The collaboration with key stakeholders ensures a focus on sustainable energy development in the region.
Original Source: businessday.ng
