Aradel-backed Consortium Gets Approval For 2.4 Billion Shell Deal

Aradel Holdings Plc, a prominent Nigerian oil and gas company listed on the Nigerian Exchange NGX and chaired by Ladi Jadesimi, has received ministerial consent for its 2.4 billion acquisition of The Shell Petroleum Development Company of Nigeria SPDC.

Announced in January 2024, the acquisition involves Aradel's consortium, which includes Renaissance Africa Energy, ND Western, Aradel Energy, Petrolin Group, FIRST Exploration, and Waltersmith Group, gaining full control of SPDC.

The deal includes a direct payment of 1.3 billion, with an additional 1.1 billion linked to receivables and cash balances to be settled upon completion. Approved by Nigeria's Minister of Petroleum Resources, this acquisition enhances Aradel's market competitiveness and boosts its financial and operational capabilities.

Maintaining operational excellence, the transaction is designed to preserve SPDC's operational integrity post-acquisition. SPDC's technical expertise, management systems, and workforce will remain intact during the transition. Existing staff will continue in their roles as Renaissance and its partners oversee operations.

Shell will retain an advisory role, particularly in managing SPDC JV facilities, which are crucial for supplying feed gas to Nigeria LNG NLNG, a key component of the nation's energy infrastructure.