[BREAKING] Tinubu okays Shell’s sale of onshore unit SPDC to Renaissance
President Bola Tinubu, who doubles as the minister of petroleum resources, has approved Shell’s sale of its onshore subsidiary to Renaissance Africa Energy Company Limited.
Renaissance announced on Wednesday that the minister of petroleum resources has granted his consent to the sale of The Shell Petroleum Development Company (SPDC) to Renaissance.
“This approval marks a significant step forward from the announcement of the Sale and Purchase Agreements in January 2024,” it said in a statement.
Shell announced in January that it had reached an agreement to sell its SPDC to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.
Renaissance is formed of ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin.
The consideration payable to Shell as part of the transaction is $1.3 billion, the oil giant said in a statement.
Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.
The SPDC JV holds 15 oil mining leases for petroleum operations onshore and 3 for petroleum operations in shallow water in Nigeria. It is operated by SPDC.