Shell has wrapped up the $2.4 billion sale of its main Nigerian onshore business to a consortium of largely indigenous companies after securing all the regulatory green lights.
The consortium of consists of domestic upstream players – ND Western, Aradel Energy, First E&P and Waltersmith, plus trading company Petrolin.
Completion of the transaction was in jeopardy in October, when the Abuja-based government declined to sanction it, arguing that it did not meet certain regulatory requirements.
However, in December, the Renaissance deal received presidential assent.
This approval occurred at the same time that Shell took a final investment decision on its long-delayed Bonga North project offshore Nigeria, targeting first oil by the end of the decade, much longer than a subsea project of this scale would normally take.
As a result of the deal now being done and dusted, SPDC’s name will be called Renaissance Africa Energy Company Limited.
Tony Attah, managing director and chief executive officer of Renaissance Africa said: “We and our shareholder companies are pleased that the federal government has given the green light for this milestone acquisition in line with the provisions of the Petroleum Industry Act.”
Shell said the sale aligns with the supermajor’s intent to simplify its presence in Nigeria by exiting onshore oil production in the Niger Delta and focus on future “disciplined investment” in its deepwater and integrated gas positions” in the country.
Renaissance now controls SPDC’s 30% stake in the SPDC joint venture, an unincorporated joint venture in which state-owned NNPC holds a 55% stake, TotalEnergies has a 10% interest and Eni controls 5%.
Shell said no “significant impairments” are expected as a result of completion of the transaction.