Renaissance Africa Energy Holdings has completed the acquisition of Shell’s Nigerian assets for $2.4 billion, marking a key moment in the country’s energy sector. This acquisition ends Shell’s near-century operations in Nigeria, reflecting trends of Western companies retreating from the region. Renaissance and its partners plan to leverage their extensive assets and expertise to foster sustainable development and energy security in Africa.
Renaissance Africa Energy Holdings has successfully completed the acquisition of Shell Petroleum Development Company of Nigeria for $2.4 billion. This pivotal transaction, finalized with all necessary regulatory approvals, signifies a major development in Nigeria’s energy sector. Following the acquisition, Shell will be rebranded as Renaissance Africa Energy Company Limited, marking the end of Shell’s nearly century-long operations in Nigerian onshore oil and gas.
This acquisition is part of a broader trend of Western energy companies, including Exxon Mobil, Italy’s Eni, and Norway’s Equinor, retreating from Nigeria. Initially announced in January, the transaction faced a block from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October due to concerns about Renaissance’s ability to manage the assets, which contain approximately 6.73 billion barrels of oil and 56.27 trillion cubic feet of gas.
However, the situation changed last December when Shell received approval from Nigeria’s oil minister to proceed with the sale. Tony Attah, Managing Director and CEO of Renaissance, expressed pride in accomplishing this strategic acquisition, highlighting the company’s vision to become Africa’s leading oil and gas entity, aiding in energy security and industrialization sustainably.
Attah also recognized key stakeholders, including the Honourable Minister of Petroleum Resources and NUPRC’s CEO, for their support in facilitating the transaction which is anticipated to advance Nigeria’s oil and gas resource development and foster industrial growth.
Renaissance’s partner companies, consisting of four major Nigerian independent oil and gas firms—ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group—along with Petrolin, an international firm, collectively possess an asset base exceeding $3 billion and produce nearly 100,000 barrels of oil daily from 12 mining leases. Their operational experience in the Niger Delta aligns with a mutual commitment to sustainable energy growth.
In summary, Renaissance Africa Energy Holdings has made a significant stride in Nigeria’s energy sector by acquiring Shell’s assets for $2.4 billion. This acquisition reflects broader changes in the market as Western companies depart Nigeria. With the combined strengths of its partner companies, Renaissance aims to spearhead advancements in energy security and industrial growth, thus positioning itself as a leader in African oil and gas development.
Original Source: businessday.ng
