Renaissance Completes Acquisition of Shell’s $2.4 Billion Asset in Nigeria
Renaissance Africa Energy Holdings has completed the acquisition of Shell Petroleum Development Company of Nigeria for $2.4 billion, rebranding SPDC to Renaissance Africa Energy Company Limited. This marks the end of Shell’s nearly 100 years in Nigeria and reflects a trend of Western companies exiting the country’s energy sector. Renaissance’s leadership emphasizes sustainable development in Nigeria’s oil and gas industry.
Renaissance Africa Energy Holdings has announced the successful completion of its acquisition of Shell Petroleum Development Company of Nigeria for $2.4 billion. This transaction, finalized after receiving the necessary regulatory approvals, signifies a pivotal moment in Nigeria’s energy sector. Following the acquisition, SPDC will be rebranded as Renaissance Africa Energy Company Limited, marking the conclusion of Shell’s nearly century-long operations in the region.
The acquisition coincides with a broader trend of Western energy companies, such as Exxon Mobil, Eni, and Equinor, retreating from Nigeria. Although initially announced in January, the deal faced obstacles when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) blocked it in October due to concerns about Renaissance’s ability to manage the substantial assets, which consist of an estimated 6.73 billion barrels of oil and 56.27 trillion cubic feet of gas.
In December, Shell secured approval from Nigeria’s oil minister to proceed with the sale of its onshore and shallow-water assets to Renaissance, paving the way for this acquisition. Tony Attah, the managing director and CEO of Renaissance, expressed pride in completing this strategic acquisition. He stated,
“The Renaissance vision is to be Africa’s leading oil and gas company, enabling energy security and industrialization in a sustainable manner.”
Attah thanked various stakeholders, including government officials, for their support in facilitating the transaction, which aims to enhance Nigeria’s oil and gas development. The Renaissance consortium includes four major Nigerian independent oil and gas companies, which collectively manage an asset base of over $3 billion and produce approximately 100,000 barrels of oil daily from 12 leases.
Together with Petrolin, an international energy company, these partners are committed to operational expertise and sustainable energy development in the Niger Delta.
The successful acquisition of Shell’s assets by Renaissance Africa Energy Holdings marks a significant turning point in Nigeria’s energy landscape. This transaction, representing Shell’s departure from its long-standing operations in the region, underscores a trend of Western companies withdrawing from Nigeria. With esteemed partners and a robust asset base, Renaissance aims to lead in providing sustainable energy solutions within the country.
Original Source: businessday.ng
