The federal government and Renaissance Africa Energy Holdings have pledged close collaboration to drive growth and investment in the country’s oil and gas sector following Renaissance’s landmark $2.4 billion acquisition of Shell Petroleum Development Company of Nigeria (SPDC) onshore assets.
The deal, finalised after securing all regulatory approvals, marks the end of Shell’s nearly century-long onshore operations in Nigeria and signals a new era led by a consortium of Nigerian independents and international partners. SPDC will now operate as Renaissance Africa Energy Company Limited.
Minister of Petroleum Resources (Oil), Heineken Lokpobiri described the transaction as a “significant milestone” that reflects the government’s commitment to enabling business and attracting investment.
Speaking when a team from Renaissance Africa Energy, led by the chief executive officer, Dr. Tony Attah, paid him a courtesy visit in Abuja, Lokpobiri emphasised that the government’s role is to create a conducive environment for indigenous companies like Renaissance to thrive, assuring continued support for increased production and value retention in Nigeria.
Lokpobiri yesterday charged more Nigerian firms to acquire the onshore assets of the International Oil Companies (IOCs), adding that more divestments mean more investment and wealth for the country.
“Our conviction is that this country will grow better under Renaissance and the other companies that acquired Shell and Mobil.
“And I have also said more companies should try and acquire onshore and shallow water assets,” said the minister
He said gone are the days the revenue from the production of oil from the SPDC was repatriated to Hague.
According to him, Renaissance being a Nigerian firm will retain its dividends in the country.
Lokpobiri said his expectation is for the firm to produce its roadmap.
He said, “ Our expectation is you will have a clear roadmap on the way you want to go and where you want to be.”
The minister tasked the visiting firm on producing a timeline plan for increased production.
“Once we produce more barrels they will amount to more wealth, “ he said.
He urged Attah to justify the confidence the government reposed on the company at the time of acquisition.
He said although investments in the industry were stalled for 12 years, they have started pouring in owing to the reforms of the President Bola Ahmed Tinubu administration.
He said “But because the government came with all the reforms, we are no longer where we were.”
Lokpobiri, who said his office is always open to operators who have issues, noted that “Our responsibility is to address all the issues raised by IOCs and OPTS.
“By the end of this administration, all the perennial issues will be settled once and for all.”
The minister who described Nigeria as the leading African country with the highest human resources in the oil and gas industry, revealed the willingness to share the experiences with the fledgling African oil producing countries.
He said the other countries are inviting Nigerians to explore their oil resources but he has advised them to wait till Nigeria finishes exploring it.
Speaking earlier, Attah pledged that Renaissance will help the country move from energy poverty to attain its energy security as no country can industrialize without energy security.
He added that “Today, with your help we can as Nigeria resolve to turn things around and enable industrialization most importantly help engender that energy security that will help boost our economy as a country and as a people.”
He pledged the company’s resolve to do better than SPDC .
He vowed to improve on all the positive things Shell was known for, stressing it is not an easy feat to acquire the assets which a company as Shell operated for over 60 years.
According to Attah, the company looks beyond Nigeria to becoming the leading African energy firm.
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