Renaissance completes total acquisition of Shell’s $2.4 billion assets

• Renaissance Africa Energy Holdings has completed the total acquisition of Shell’s $2.4 billion assets
• The company said the acquisition further positions it as a leading oil and gas company in Africa
• The Renaissance-Shell deal was one of the five oil divestment deals struck in 2024

Renaissance Africa Energy Holdings has completed its transaction with Shell for the total acquisition of the entire equity holding in Shell Petroleum Development Company (SPDC) of Nigeria.

The completion of the assets acquisition follows the signing of a sale and purchase agreement with Shell in January 2024 and obtaining all regulatory approvals required for the transaction.

According to a statement by the company on Thursday, March 12, SPDC will now be renamed Renaissance Africa Energy Company Limited.

The Managing Director/Chief Executive Officer of Renaissance, Tony Attah, said the acquisition further positions the consortium as a leading oil and gas company in Africa.

He appreciated the Federal Government for its foresight and belief in the company’s potential, noting that the move has paved the way for rapid development of the country’s oil and gas resources.

“We are extremely proud to have completed this strategic acquisition. The Renaissance vision is to be Africa’s leading oil and gas company, enabling energy security and industrialisation in a sustainable manner.

“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.

“We extend our appreciation to the Minister of Petroleum Resources, and the CEO of the Nigeria Upstream Petroleum Regulatory Commission, and the GCEO of Nigeria National Petroleum Company Limited for their foresight and belief, paving the way for the rapid development of Nigeria’s vast oil and gas resources as strategic accelerator for the country’s industrial development,” Attah said.

Renaissance-Shell deal one of the acquisitions of 2024

The deal between Shell and Renaissance was one of the oil divestment deals struck in 2024. However, it was met with regulatory delays, despite both parties reaching an agreement in January 2024.

It was among the five divestment applications submitted to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), four of which the NUPRC said passed the regulatory test and secured ministerial consent. 

On the Shell-Renaissance deal, the commission said it is committed to following regulatory standards established under the Petroleum Industry Act (PIA) in all the divestment deals brought to it.

NUPRC’s CEO, Gbenga Komolafe, said the commission rejected the deal because it “could not scale regulatory test.”

Shell had announced its agreement to sell its 30 per cent stake in SPDC to Renaissance for over $2.4 billion to streamline its portfolio and direct disciplined investments toward deepwater and integrated gas ventures in Nigeria.

The assets include an estimated 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas.

In December 2024, the Federal Government reportedly approved the sale of $2.4 billion onshore assets of Shell to Renaissance Africa Energy Company Limited.

Renaissance Africa Energy Holdings is a consortium consisting of four successful Nigerian independent oil and gas companies, which are; ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.

Each of these companies has considerable operations experience in the Niger Delta, and Petrolin, an international energy company with global trading experience and a pan African outlook.

FG says energy sector attracted $6.7 billion investment in 2024

Meanwhile, TheRadar earlier reported that the Federal Government said Nigeria’s energy sector attracted $6.7 billion worth of investments in 2024.

This is according to the ‘Presidency Energy Sector Wrap-Up 2024’ compiled and released by the office of the Special Adviser to the President on Energy.