- Saturday, May 4, 2024
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A consortium of four Nigerian companies
under the name Renaissance Africa Energy and an international Energy Group are
planning to acquire Shell Petroleum Development Company at a value put at $ 2.4
billion.
A press statement from the group
stated: “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).”
Renaissance is a consortium
consisting of ND Western Limited, Aradel Holdings Plc. the Petrolin Group,
FIRST Exploration and Petroleum Development Company Limited and the Waltersmith
Group.
”This acquisition 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 working in partnership with all the 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.”
Transaction will preserve SPDC’s operating
capabilities for the benefit of joint venture
Shell will remain a major
investor in Nigeria’s energy sector through its Deepwater and Integrated Gas
businesses
The transaction has been designed
to preserve the full range of SPDC’s operating capabilities following the
change of ownership. This includes the technical expertise, management systems
and processes that SPDC implements on behalf of all the companies in the SPDC
Joint Venture (SPDC JV)*. SPDC’s staff will continue to be employed by the
company as it transitions to new ownership.
Following completion, Shell will
retain a role in supporting the management of SPDC JV facilities that supply a
major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve
maximum value from NLNG.
Shell to focus investment on
Deepwater and Integrated Gas positions
“This agreement marks an
important milestone for Shell in Nigeria, aligning with our previously
announced intent to exit onshore oil production in the Niger Delta, simplifying
our portfolio and focusing future disciplined investment in Nigeria on our
Deepwater and Integrated Gas positions” said Zoë Yujnovich, Shell’s Integrated
Gas and Upstream Director.
“It is a significant moment for
SPDC, whose people have built it into a high-quality business over many years.
Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to
its next chapter under the ownership of an experienced, ambitious Nigerian-led
consortium.
“Shell sees a bright future in
Nigeria with a positive investment outlook for its energy sector. We will
continue to support the country’s growing energy needs and export ambitions in
areas aligned with our strategy.”
* The SPDC JV is an
unincorporated joint venture comprised of SPDC Ltd (30%), the government owned
Nigerian National Petroleum Corporation (55%), Total Exploration and Production
Nigeria Ltd (10%) and Nigeria Agip Oil Company Ltd (5%).
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