Renaissance Africa Energy Company Limited has announced ministerial approval for its acquisition of Shell Petroleum Development Company’s onshore oil assets in Nigeria.
In January 2024, Shell agreed to sell its Nigerian onshore oil assets to Renaissance Africa for over $1.3 billion, subject to regulatory clearance.
The assets include an estimated 6.73 billion barrels of oil and condensate reserves, along with 56.27 trillion cubic feet of associated and non-associated gas reserves.
Renaissance Africa is a consortium comprising ND Western, Aradel Energy, First Exploration & Production, Waltersmith, and Petrolin.
The transaction faced regulatory hurdles. On October 21, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced approvals for several divestment transactions, but the Shell-Renaissance deal was initially rejected for failing to meet regulatory compliance requirements.
NUPRC Chief Executive Gbenga Komolafe cited unresolved legal disputes, environmental degradation claims, and allegations of human rights abuses against Shell in the Niger Delta as complicating factors.
The commission stipulated that the deal would only proceed if Shell committed to addressing oil spill liabilities and funding cleanup efforts in the region.
Despite these challenges, Renaissance Africa confirmed that President Bola Tinubu, acting in his capacity as the Minister of Petroleum Resources, approved the transaction.
“The Minister of Petroleum Resources has granted approval for the sale of Shell Petroleum Development Company to Renaissance,” the consortium announced.
The approval signifies significant progress since the January 2024 Sale and Purchase Agreement announcement.
On October 30, Olu Verheijen, the president’s special adviser on energy, assured stakeholders that the outstanding issues surrounding the deal would soon be resolved.
In addition to the Shell-Renaissance transaction, the federal government approved four other divestment deals in October, involving:
- Mobil Producing Nigeria Unlimited
- Equinor Nigeria Energy Company Limited
- TotalEnergies EP Nigeria Limited
- Nigerian Agip Oil Company Limited
The approval of Shell’s asset sale to Renaissance Africa marks a pivotal moment in Nigeria’s oil and gas sector, signaling increased opportunities for indigenous players while emphasizing the importance of environmental accountability.
