Aradel Holdings Completes Landmark Shell Nigeria Buyout in Local Energy Push

In a watershed moment for Nigeria’s energy sector, Aradel Holdings Plc has announced the completion of a transformative acquisition of Shell Petroleum Development Company of Nigeria (SPDC), as part of a consortium of indigenous oil and gas firms. The deal marks a significant milestone in the country’s push to localize its vast hydrocarbon assets and accelerate energy security.

The transaction was led by Renaissance Africa Energy Holdings, a consortium comprising Aradel Holdings, ND Western Limited, FIRST Exploration & Petroleum Development Company, and Waltersmith Group—three of Nigeria’s most established independent operators. They were joined by Petrolin, an international energy firm with a pan-African investment outlook.

Aradel’s Managing Director and CEO, Adegbite Falade, described the acquisition as a “landmark moment” that underscores the growing role of indigenous companies in Nigeria’s oil and gas sector.

“This transaction heralds a new era for local participation and highlights the critical role of homegrown energy companies in Nigeria’s industrialization. We remain committed to upholding global standards and ensuring operational excellence,” Falade said.

The consortium secured all necessary regulatory approvals after a sale and purchase agreement was signed with Shell in January 2024. The Federal Government’s backing was key to ensuring a smooth transition, and the transaction signals a broader shift away from reliance on multinational oil giants towards Nigerian-led operations.

Aradel’s Expanding Footprint

For Aradel, the acquisition of SPDC via Renaissance aligns with its broader strategy of asset diversification and long-term value creation. The company, which already operates through its subsidiaries in upstream, midstream, and downstream energy activities, sees the deal as a step towards consolidating its position as Nigeria’s foremost integrated energy player.

With a 33.34% equity holding in Renaissance, including a direct 12.5% stake and an indirect 20.84% stake through ND Western, Aradel’s influence within the consortium is significant.

The company’s Aradel Gas Limited is already a supplier to Nigeria LNG, and its Aradel Refineries Limited (95% owned) produces refined petroleum products such as AGO, HFO, Naphtha, and DPK, underscoring its commitment to advancing Nigeria’s energy independence.

Energy Security and Policy Support

The deal comes amid Nigeria’s ongoing reforms to maximize domestic energy production and limit the country’s reliance on imported petroleum products. The support of key regulators—including the Minister of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company Limited (NNPCL)—has been instrumental in pushing the transaction forward.

“With this acquisition, we are paving the way for the rapid development of Nigeria’s vast oil and gas resources. This is essential for achieving energy security and supporting the country’s industrial development,” Falade added.

As Shell and other international oil majors divest from Nigeria’s onshore operations, the spotlight increasingly turns to local companies to maintain and expand production. With this latest deal, Aradel and its partners have positioned themselves at the heart of this transition, setting the stage for a new era of Nigerian energy leadership.

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