Renaissance To Control 30% Stake In SPDC JV After Divestment Deal

London-based oil and gasoline firm, Shell Plc, has accomplished the sale of the Shell Petroleum Improvement Firm of Nigeria Ltd to Renaissance, as introduced in January.

With the deal now full, Renaissance controls SPDC’s 30 per cent stake within the SPDC JV, an unincorporated three way partnership with the Nigerian Nationwide Petroleum Firm (55%), Complete Exploration and Manufacturing Nigeria Ltd (10%) and Agip Vitality and Pure Assets (Nigeria) Restricted (5%).

The sale aligns with Shell‘s intent to simplify its presence in Nigeria by way of an exit of onshore oil manufacturing within the Niger Delta and a spotlight of future disciplined funding in its Deepwater and Built-in Fuel positions.

Renaissance is a consortium of 5 corporations comprising 4 exploration and manufacturing corporations – ND Western, Aradel Vitality, First E&P, Waltersmith – based mostly in Nigeria – and the worldwide vitality group, Petrolin. No monetary particulars had been disclosed.

Renaissance Africa Vitality Holdings says it has efficiently accomplished the acquisition of Shell’s 100% fairness holding within the Shell Petroleum Improvement Firm of Nigeria (SPDC).

The corporate introduced the event in an announcement on Thursday.

In January 2024, Shell stated, it agreed to promote its Nigerian inshore oil belongings to Renaissance Africa for over $1.3 billion, topic to regulatory approvals.

Nevertheless, on October 21, when the Federal Authorities introduced the approval of different divestment offers, the Shell-Renaissance transaction didn’t seem to fulfill regulatory necessities.

Two months later, the corporate stated it had acquired Federal Authorities’s approval.

Within the newest announcement, the corporate stated, ‘Going ahead, SPDC can be renamed as ‘Renaissance Africa Vitality Firm Restricted.’

“Renaissance Africa Vitality Holdings is a consortium consisting of 4 profitable Nigerian unbiased oil and gasoline corporations: ND Western Restricted, Aradel Holdings Plc. FIRST Exploration and Petroleum Improvement Firm Restricted and the Waltersmith Group, every with appreciable operations expertise within the Niger Delta, and Petrolin, a world vitality firm with international buying and selling expertise and a pan African outlook,” the corporate stated..

Talking of the acquisition, Tony Attah, managing director and chief govt officer (CEO) of Renaissance Africa stated: “We’re extraordinarily proud to have accomplished this strategic acquisition”.

“The Renaissance imaginative and prescient is to be “Africa’s main oil and gasoline firm, enabling vitality safety and industrialisation in a sustainable method.

“We and our shareholder corporations are subsequently happy that the Federal Authorities has given the inexperienced mild for this milestone acquisition in step with the provisions of the Petroleum Business Act.

“We lengthen our appreciation to the Minister of Petroleum Assets, and the CEO of the Nigeria Upstream Petroleum Regulatory Fee (NUPRC) and the GCEO of Nigerian Nationwide Petroleum Firm Restricted (NNPCL) for his or her foresight and perception, paving the way in which for the fast improvement of Nigeria’s huge oil and gasoline sources as strategic accelerator for the nation’s industrial improvement.”

In keeping with the assertion, Renaissance associate corporations collectively have an asset base of greater than $3 billion and at present safely produce roughly 100,000 barrels of oil per day (bpd) from 12 oil mining leases and function two functioning modular refineries in Nigeria’s Niger Delta.

The corporate stated, it’s ready to leverage its core competencies, know-how and expertise, to steer the supply of Nigeria’s aspiration for accelerated oil and gasoline reserves and manufacturing development and to thrive past the vitality transition.

Renaissance Africa additionally stated it was dedicated to taking its place as Africa’s main oil and gasoline firm, devoted to fostering vitality safety, innovation, and sustainable improvement.