Renaissance Africa Energy Holdings has acquired Shell’s Nigerian assets for $2.4 billion, marking a significant change in the country’s energy sector and the end of Shell’s operations. The acquisition faced regulatory challenges but was ultimately approved, indicating a strategic shift in energy management in Nigeria.
Renaissance Africa Energy Holdings has successfully completed its acquisition of Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion after obtaining all necessary regulatory approvals. This acquisition reaffirms Renaissance’s commitment to becoming a leading player in Nigeria’s energy sector, with SPDC now rebranded as Renaissance Africa Energy Company Limited.
The sale marks the end of Shell’s nearly century-long operations in Nigerian onshore oil and gas, reflecting a broader trend of Western energy companies exiting Nigeria, including Exxon Mobil, Eni, and Equinor. Initially announced in January, the transaction faced regulatory hurdles that delayed completion until now.
Despite the Nigerian Upstream Petroleum Regulatory Commission’s earlier objections regarding Renaissance’s capacity to manage the assets—which possess an estimated 6.73 billion barrels of oil and 56.27 trillion cubic feet of gas—the situation changed following approval from Nigeria’s oil minister.
Tony Attah, managing director and CEO of Renaissance, expressed pride in finalizing this strategic acquisition. He emphasized the group’s vision to ensure energy security and industrial growth in Africa while thanking key stakeholders, including regulatory authorities, for their support.
The Renaissance consortium includes notable Nigerian independent oil and gas entities such as ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and Waltersmith Group, alongside the international company Petrolin. Collectively, they possess an asset base exceeding $3 billion and aim to advance sustainable energy development in Nigeria.
In summary, Renaissance Africa Energy Holdings has achieved a significant milestone by acquiring Shell’s Nigerian assets, marking a transformative moment in Nigeria’s energy landscape. With strong backing from a consortium of leading companies and key stakeholders, Renaissance is poised to enhance operational capabilities and foster sustainable development in the oil and gas sector. This acquisition not only reflects Renaissance’s ambitions but also illustrates the shifting dynamics in the energy industry in Nigeria.
Original Source: businessday.ng
