The Federal Government of Nigeria has initiated a due diligence meeting for the proposed $2.4 billion asset sale by Shell to Renaissance Africa Energy. The meeting, which commenced on Monday, aims to facilitate the divestment exercise, with a target completion date set for June of this year.
Shell, a prominent British energy major, had announced its intention to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited, to Renaissance Africa Energy for $2.4 billion. This decision came after approximately a century of operations in the Niger Delta region.
Renaissance Africa Energy, a consortium comprising four exploration and production companies based in Nigeria and an international energy group, confirmed the agreement. The consortium, consisting of ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group, acknowledged the significance of the deal.
While Shell emphasized that the completion of the transaction is contingent upon approvals by the Federal Government of Nigeria and other conditions, Renaissance expressed confidence in the landmark transaction.
To facilitate the process, parties involved in the deal, along with officials from the Nigerian Upstream Petroleum Regulatory Commission, convened in Abuja for a due diligence dialogue on Monday. This dialogue marks a crucial step in ensuring transparency and compliance with regulatory requirements throughout the divestment process.
