Renaissance Africa Energy Holdings has acquired Shell’s Nigerian assets for $2.4 billion, completing a significant transition in the country’s energy sector. The acquisition represents a broader withdrawal of Western companies from Nigeria, and Renaissance aims to enhance energy security and sustainable development under its leadership.
Renaissance Africa Energy Holdings has successfully completed its acquisition of Shell Petroleum Development Company of Nigeria (SPDC) for $2.4 billion, marking a significant shift in Nigeria’s energy landscape. This deal was finalized after obtaining all regulatory approvals and leads to the rebranding of SPDC as Renaissance Africa Energy Company Limited, marking the end of Shell’s nearly century-long operations in Nigerian oil and gas.
The acquisition is part of a wider trend of Western energy companies exiting Nigeria, a development seen with Exxon Mobil, Eni, and Equinor. Although the acquisition was initially announced in January, it faced regulatory hurdles in October when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) raised concerns about Renaissance’s capabilities to manage the assets, which include 6.73 billion barrels of oil and 56.27 trillion cubic feet of gas.
Following these setbacks, Shell received approval from Nigeria’s oil minister in December for the sale. Tony Attah, CEO of Renaissance, expressed pride in concluding the deal, stating that their vision is to establish Renaissance as a leader in Africa’s oil and gas sector, promoting energy security and sustainable industrialization. Attah acknowledged the support of key stakeholders in facilitating the acquisition, emphasizing its potential impact on Nigeria’s energy development.
Renaissance’s partner companies collectively have an asset base exceeding $3 billion, producing around 100,000 barrels of oil per day across 12 leases. Additionally, the consortium operates two modular refineries in the Niger Delta, reiterating its commitment to innovation in the energy industry. The collaboration includes four Nigerian independent oil firms and Petrolin, which together leverage extensive experience in the Niger Delta and a commitment to sustainable energy practices.
Renaissance Africa Energy Holdings has completed its $2.4 billion acquisition of Shell’s Nigerian assets, marking a notable transformation in the country’s energy sector. With the backing of significant partners, Renaissance intends to foster energy security and sustainable development in Nigeria. The exit of major Western oil companies indicates a shift in the Nigerian energy landscape, while Renaissance aims to spearhead industrial growth through this acquisition.
Original Source: businessday.ng
