Nigeria has approved a $1.3 billion deal for Shell’s onshore assets to be acquired by a consortium of local companies, the African Energy Chamber said on Thursday.
The consortium, Renaissance, is composed of Nigerian energy firms including ND Wester Ltd., Aradel Holdings Plc, Petrolin Group, FIRS Exploration and Petroleum Development Co., and Waltersmith Group. These companies bring extensive experience in operating oil and gas assets with a focus on efficiency and socioeconomic impact.
This transaction comes as Nigeria implements a series of reforms to attract investment and promote exploration. The 2021 Petroleum Industry Act streamlined licensing procedures and incentivized exploration, while more recent reforms have enhanced energy security and regional collaboration. With targets of four million barrels of oil per day and a $10 billion investment in a pipeline, Nigeria is on track to expand its production capacity and solidify its role as a global energy leader.
NJ Ayuk, Executive Chairman of the African Energy Chamber, hailed the deal as a milestone for local empowerment.
“This approval is poised to steadily improve the positive impact the industry will have on domestic companies operating in the country,” he said, as cited by the EAC.
In October, Nigeria's state-run Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rejected a $1.3 billion deal between Shell's Nigerian unit and Renaissance, local media ThisDay reported. NUPRC cited Renaissance's inadequate capacity to handle the nation's oil and gas assets. Sources said Renaissance was not managing even 50% of its existing assets, questioning their ability to handle more. The government was concerned that this could result in further losses during a critical time for boosting oil and gas production.