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Shell marks end of operation in Nigeria as it finalizes transfer of equity to Renaissance Africa Energy Holdings.
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Renaissance achieves a milestone in Nigeria as Shell is added to its already owned consortium.
The complete acquisition of Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion by Renaissance Africa Energy Holdings has been announced successful.
This landmark transaction was finalized after securing all necessary regulatory approvals according to a statement on Thursday by the spokesman of Renaissance Africa Energy Holdings, Tony Okonedo.
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“We are extremely proud to have completed this strategic acquisition.
This follows the signing of a sale and purchase agreement with Shell in January 2024, and obtaining all regulatory approvals required for the transaction. Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited.
The Renaissance vision is to be ‘Africa’s leading oil and gas company, sustainably enabling energy security and industrialization. We and our shareholder companies are therefore 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 Tony stated.
This marks a significant milestone in Nigeria’s energy sector, especially as it also means the end of Shell’s nearly century of operations in the Nigerian onshore oil and gas sector.
READ ALSO: Shell’s Contribution to NDDC Hits $142.5m in 2023
It also reaffirms the retreat of Western Energy companies from Nigeria as Exxon Mobil, Italy’s Eni, and Norway’s Equinor have all exited the country.
Renaissance African Holdings has added Shell to its other five companies.
Initially, in January when Renaissance made the move to acquire Shell, the request was not granted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) due to the perceived inability and capacity to manage Shell’s assets by Renaissance, however, in December, they were granted approval by the Nigeria minister for oil and gas.
Renaissance’s partner companies collectively boast an asset base exceeding $3 billion and currently produce approximately 100,000 barrels of oil per day from 12 oil mining leases.
The partner companies include companies: ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group, alongside Petrolin, an international energy company with a strong global trading presence and a pan-African vision.
Currently, Renaissance has two refineries in Niger Delta and is much willing to expand its shores.
On the milestone of the acquisition of Shell, Mr. Tony Attah, the managing director and CEO of Renaissance expressed his gratitude to key stakeholders for ensuring that the acquisition was brought to fruition.
“We extend our appreciation to the Honourable Minister of Petroleum Resources, the CEO of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), and the GCEO of Nigeria National Petroleum Company Limited (NNPCL) for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as a strategic accelerator for the country’s industrial development”.
