FRI MARCH 14 2025-theGBJournal| Shell Thursday announced the completion of the sale of the Shell Petroleum Development Company of Nigeria (SPDC) to Renaissance, a divestment the multinational says aligns with its intent to simplify its presence in Nigeria through exit of onshore oil production in the Niger Delta.
The sale has an estimated total potential transaction value of $2.4 billion.
The deal completion, following the signing of a sale and purchase agreement with Shell in January 2024, and the subsequent receipt of all regulatory approvals required for the transaction, leaves Renaissance with 100% equity holding in SPDC, and 30% stake in the SPDC JV, an unincorporated joint venture with the government-owned Nigerian National Petroleum Corporation (NNPCL) (55%), Total Exploration and Production Nigeria Limited (10%) and Agip Energy and Natural Resources (Nigeria) Limited (5%).
Shell said it does not expect any significant impairments as a result of the completion of the transaction.
Renaissance is a consortium of five companies comprising four exploration and production companies-Aradel Holdings PLC, ND Western, First E&P, Nigerian based Waltersmith and the International energy group, Petrolin.
PwC acted as M&A/Financial and Tax Advisor to Renaissance and its shareholders on acquisition of Shell.
Adegbite Falade, MD/CEO of Aradel Holdings described the deal completion as ”a landmark moment for Nigeria’s energy sector,” and says it heralds a new era for local participation.
”It highlights the vital role that indigenous energy companies play in Nigeria’s industrialisation and development.”
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