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

London-based oil and gas company, Shell Plc, has completed the sale of the Shell Petroleum Development Company of Nigeria Ltd to Renaissance, as announced in January.

With the deal now complete, Renaissance controls SPDC’s 30 per cent stake in the SPDC JV, an unincorporated joint venture with the Nigerian National Petroleum Company (55%), Total Exploration and Production Nigeria Ltd (10%) and Agip Energy and Natural Resources (Nigeria) Limited (5%).

The sale aligns with Shell‘s intent to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and a focus of future disciplined investment in its Deepwater and Integrated Gas positions.

Renaissance is a consortium of five companies comprising four exploration and production companies – ND Western, Aradel Energy, First E&P, Waltersmith – based in Nigeria – and the international energy group, Petrolin. No financial details were disclosed.

Renaissance Africa Energy Holdings says it has successfully completed the acquisition of Shell’s 100 percent equity holding in the Shell Petroleum Development Company of Nigeria (SPDC).

The company announced the development in a statement on Thursday.

In January 2024, Shell said, it agreed to sell its Nigerian inshore oil assets to Renaissance Africa for over $1.3 billion, subject to regulatory approvals.

However, on October 21, when the Federal Government announced the approval of other divestment deals, the Shell-Renaissance transaction did not appear to satisfy regulatory requirements.

Two months later, the company said it had received Federal Government’s approval.

In the latest announcement, the company said, ‘Going forward, SPDC will be renamed as ‘Renaissance Africa Energy Company Limited.’

“Renaissance Africa Energy Holdings is a consortium consisting of four successful Nigerian independent oil and gas companies: ND Western Limited, Aradel Holdings Plc. FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group, each with considerable operations experience in the Niger Delta, and Petrolin, an international energy company with global trading experience and a pan African outlook,” the company said..

Speaking of the acquisition, Tony Attah, managing director and chief executive officer (CEO) of Renaissance Africa said: “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 (NUPRC) and the GCEO of Nigerian National Petroleum Company Limited (NNPCL) 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.”

According to the statement, Renaissance partner companies collectively have an asset base of more than $3 billion and currently safely produce approximately 100,000 barrels of oil per day (bpd) from 12 oil mining leases and operate two functioning modular refineries in Nigeria’s Niger Delta.

The company said, it is prepared to leverage its core competencies, technology and experience, to lead the delivery of Nigeria’s aspiration for accelerated oil and gas reserves and production growth and to thrive beyond the energy transition.

Renaissance Africa also said it was committed to taking its place as Africa’s leading oil and gas company, dedicated to fostering energy security, innovation, and sustainable development.