Business
Despite initial rejection, FG approves Renaissance’s $1.3bn Shell divestment deal
Renaissance Africa Energy Company Limited has received approval from the Nigerian Ministry of Petroleum Resources for the acquisition of Shell Petroleum Development Company (SPDC).
This significant step brings Renaissance closer to finalising the $1.3 billion deal, which was initially announced in January 2024.
In January, Shell had announced that it agreed to sell its Nigerian onshore oil assets to Renaissance Africa for over $1.3 billion subject to regulatory approvals.
Renaissance is a consortium formed by ND Western, Aradel Energy, First Exploration & Production (E&P), Waltersmith, and Petrolin.
However, on October 21, when the federal government announced the approval of other divestment deals, the Shell-Renaissance transaction did not scale the regulatory test.
READ ALSO: FG evacuates 310 Nigerians from Niger Republic
Providing an update in a statement on Wednesday, Aradel, one of the company in the consortium said the deal has now been consented to by President Bola Tinubu, who doubles as the Minister Of Petroleum Resources.
“Aradel Holdings Pic (“Aradel”), listed on the Nigerian Exchange Limited, is pleased to announce that the Minister of Petroleum Resources has granted his consent to the sale of The Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy Limited (“Renaissance”),” the statement reads.
“This approval marks a significant step forward from the announcement of the Sale and Purchase Agreements in January 2024.”
On October 30, Olu Verheijen, special adviser to the president on energy, said the issues around Shell’s proposed sale of its onshore assets to Renaissance would be resolved soon.
By: Babajide Okeowo
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
