Renaissance Africa Energy has announced the acquisition of Shell’s entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).
This information was conveyed in a statement issued by the company, announcing the signing of the transaction.
“We are pleased to announce the signing of a landmark transaction with Shell to acquire its entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC),” the statement read.
Renaissance is a consortium of five mostly local companies consisting of ND Western Limited, Aradel Holdings Plc., the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.
This acquisition, the consortium stated in a press release, “marks a significant milestone for Renaissance, establishing its strategic position in the Nigerian market.
We are committed to ensuring a smooth transition and look forward to leveraging our expertise, in partnership with SPDC’s industry-leading staff and collaborating with all stakeholders in the SPDC-JV to drive continued growth and success in Nigeria and beyond.”
Completion of the transaction is subject to the requisite regulatory approvals.
The firm will acquire onshore assets of Shell’s subsidiary for a consideration of $1.3 billion.
The buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.
The transaction, it was said, would fulfill Shell’s long-term goal of extracting itself from a challenging operating environment in the Niger Delta region if approved by the government while retaining a presence in the offshore and deep offshore.