Renaissance, a consortium of Nd Western Limited, Aradel Energy Limited, First Exploration & Petroleum Development Company Limited, Waltersmith Refining & Petrochemical Company Limited and Petrolin Group reached an agreement to acquire The Shell Petroleum Development Company of Nigeria Limited from Shell plc (LSE:SHEL) for $2.4 billion on January 16, 2024. Under the terms of agreement, the consideration payable to Shell as part of the transaction is $1.3 billion and the buyer will make additional cash payments to Shell of up to $1.1 billion, primarily relating to prior receivables and cash balances in the business, with the majority expected to be paid at completion of the transaction. The amounts above will be adjusted to reflect any shareholder distributions, above $200 million, made prior to completion. Other contingent payments, including those related to gas supply to NLNG, may become payable depending on business performance and fluctuation of product prices. The net book value of the entity subject to this transaction is approximately $2.8 billion as at December 31, 2023. Under the agreed deal structure, economic performance accrues to the buyer with effect from December 31, 2021 (the effective date). As part of the transaction, parties have agreed a sharing mechanism that, upon completion, will give Shell an interest in the performance of the export feedgas business going forward. Shell will retain its interest in one shallow-water lease (OML 144). However, Shell will continue to consolidate SPDC until control transfers at completion. Although any amounts will depend on the future financial performance of the business, we expect to recognise impairments in respect of the business up to the date of completion, including to the extent that the net book value of SPDC exceeds the expected consideration at completion. If the transaction is approved, Shell will still have at least three subsidiary operations in Nigeria, namely, its Gulf of Guinea deepwater operations, an industrial gas business and solar power for industrial activities i.e., following the sale, Shell will continue operating in the country through its deep-water oil business, Shell Nigeria Exploration and Production Company Ltd. As of March 6, 2024, Tony Attah has assumed the role of Chief Executive Officer at Renaissance.

The transaction has been designed to preserve the full range of SPDC's operating capabilities following the change of ownership. Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG. SPDC?s staff will continue to be employed by the company as it transitions to new ownership. Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions i.e. Fyneface Dumnamene, director of the Youths and Environmental Advocacy Centre, urged the Nigerian government to require Shell and the new buyers to provide a plan for addressing environmental damage and compensating communities before granting approvals. As of January 17, 2024, The Head of Business and Human Rights of Amnesty International, AI, Mark Dummett, has called on the Federal Government of Nigeria, not to allow multinational oil and gas company, Shell, to wash its hands of the problems caused by decades of oil spills in the Niger Delta. As of April 29, 2024, Nigeria's regulator begins evaluation of Shell's onshore divestment in Niger Delta region.