Mohammed Shosanya
A consortium of five mostly local companies wIll acquire onshore assets of Shell’s subsidiary for a consideration of $1.3 billion
The buyers will make an additional payment of up to $1.1 billion relating to prior receivables at completion.
The transaction would fulfill Shell’s long-term goal of extracting itself from a challenging operating environment in the Niger Delta region if approved by the government,while retaining a presence in the offshore and deep offshore.
The buyer of the asset, known as Renaissance, is formed of exploration and production companies ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, all of which are based in Nigeria, according to the statement.
Renaissance Africa Energy disclosed the deal in a statement announcing the acquisition of Shell’s entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).
“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).
“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,the statement said.