Renaissance Africa Energy has confirmed the signing of what it called a landmark transaction with Shell PLC to acquire its entire shareholding in the Shell Petroleum Development Company of Nigeria Limited.

Renaissance is a consortium consisting of ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.

Shell had earlier announced that Shell PLC on Tuesday said it has “reached an agreement to sell its oil business in the Niger Delta, the Shell Petroleum Development Company of Nigeria Limited (SPDC)” to Renaissance Africa Energy.

In a statement on its website Tuesday, Renaissance said the acquisition marks a significant milestone, establishing its strategic position in the Nigerian market.

The consortium said it was “committed to ensuring a smooth transition and looks forward to leveraging its expertise, in partnership with SPDC’s industry-leading staff and working in partnership with all the stakeholders in the SPDC-JV to drive continued growth and success in Nigeria and beyond”.

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However, Renaissance said, “the completion of the transaction is subject to the requisite regulatory approvals.”

Also reacting, one of the companies that made up the consortium, Aradel Holdings Plc said the acquisition “marks a significant milestone for Aradel, which will bring enormous benefits to its shareholders, further strengthen its financial outlook and consolidate its strategic positioning in the Nigerian energy market”.

Aradel disclosed that it is committed to working in partnership with all the stakeholders in Renaissance and the SPDC Joint Venture to ensure a smooth transition and drive continued growth and success in Nigeria and beyond.

Aradel’s Chief Executive Officer/Managing Director, Adegbite Falade, was quoted as saying: “This successful acquisition represents a key step in our journey to becoming a leading energy company in Africa and aligns with our long-term strategic growth plans. It also demonstrates our commitment to our “3R” Strategy of Resilience, Robustness, and Redundancy.”

Shell, for years, has sought to sell its Nigerian oil and gas business but will remain active in Nigeria’s more lucrative and less problematic offshore sector.

The company’s exit is part of plans by foreign oil companies to retreat from Nigeria as they focus on newer and more profitable operations.