Nigeria’s Oil and Gas sector gets fueled up by Renaissance

Renaissance is a consortium of four Nigerian companies (ND Western Limited, Aradel Holdings Plc, First Exploration and Petroleum Development Company Limited, and Waltersmith Group) and an international oil company (the Petrolin Group). They successfully completed a landmark $2.4 billion acquisition of the entire (100%) equity holding in the Shell Petroleum Development Company of Nigeria (SPDC). This diverse mix of players underscores the deal’s importance in promoting Nigerian ownership and control over the country’s oil assets, with international collaboration.

SPDC, a member of the Shell Group, is the operator of a large portfolio of onshore oil and gas assets in Africa and one of the Continent’s most prominent diversified energy business.

This acquisition is a milestone in the effort to indigenize Nigeria’s oil and gas sector. It provides Renaissance with a substantial stake in the country’s oil production, with potential to increase its reserves, enhance operational capabilities, and contribute to the local economy. The deal also highlights the confidence the Nigerian Government has in Renaissance's ability to manage the strategically important portolio of SPDC’s assets.

Renaissance needed a partner with deep industry knowledge and understood PwC's strength in the Oil and Gas sector. PwC was positioned as a strategic advisor through previous interactions and existing relationships. Renaissance wanted a long term advisor who understood their overall goals and transformation objectives. PwC Nigeria was the sole Merger and Acquisition (M&A) Financial and Tax Advisor to Renaissance on this landmark transaction. The team worked closely with the consortium on both M&A (i.e. financial modelling, valuation, transaction structuring and negotiation support) and due diligence workstreams (i.e. financial, tax, ESG and HR due diligence.)

The energy industry in Nigeria continues to undergo significant changes and offer opportunities to players across the value chain. The transaction has been designed to preserve the full range of SPDC's operating capabilities following the change of ownership. This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.

Renaissance’s stated vision is to be Africa’s leading energy company, enabling energy security and industrialization in a sustainable manner. This opportunity represents not only a financial acquisition, but a strategic move which strengthens Renaissance’s position in the Nigerian oil and gas sector and contributes to the broader goal of indigenizing the sector.

SPDC’s acreage contains 18 Oil Mining Licenses, including those that are critical for the supply of gas to Nigeria LNG Limited, two critical export terminals, and pipelines used by numerous oil and gas producers across the Niger Delta to evacuate crude oil and natural gas for export and domestic consumption.