Renaissance Africa Energy Company Limited, a Nigerian oil and gas consortium, has confirmed receiving ministerial consent for the acquisition of Shell Petroleum Development Company (SPDC).
The landmark announcement, made in a statement issued on Wednesday, signifies a major step in the company’s ambition to solidify its position in Nigeria’s energy sector.
The acquisition is poised to reshape the landscape of Nigeria’s oil and gas industry, given SPDC’s long-standing history and significant assets in the country.
SPDC, a subsidiary of Shell Plc, has been a leading player in Nigeria’s upstream oil and gas sector for several decades, holding key interests in onshore oil fields and related infrastructure.
The approval is essential under the Petroleum Act, which requires all oil and gas asset transfers to be sanctioned by the Minister of Petroleum Resources to ensure compliance with industry standards and national interests.
The acquisition includes SPDC’s interests in several onshore oil blocks, its joint venture with the Nigerian National Petroleum Company Limited (NNPCL), and associated midstream and downstream assets.
While the financial specifics of the deal remain undisclosed, industry experts estimate the acquisition’s value to run into billions of dollars, given the strategic importance of SPDC’s assets.
The move is expected to further Nigeria’s commitment to local content development.
Meanwhile, Renaissance Africa Energy has expressed its commitment to maintaining and improving the operational excellence associated with SPDC.
The consortium says it plans to invest in modernizing infrastructure, enhancing environmental standards, and fostering community engagement to ensure sustainable operations in the Niger Delta region.
The acquisition aligns with Shell’s global strategy of divesting from onshore assets in Nigeria to focus on deepwater operations and cleaner energy solutions.
The company has been actively selling its onshore stakes in Nigeria over the past few years as it repositions itself in the global energy market.
Experts say Renaissance Africa Energy’s successful acquisition of SPDC could pave the way for a more locally-driven oil and gas sector, positioning Nigeria to take greater control of its energy destiny.
