Business
Shell $1.3bn assets sale gets regulatory agency nod
Shell $1.3bn assets sale gets regulatory agency nod
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.
Senior government sources told BusinessDay that the transaction that involves Shell’s 75-year-old onshore assets to Renaissance – a consortium of four exploration and production companies in Nigeria and an international energy group – has got the green light from the regulatory commission as required by the Petroleum Industry Act (PIA).
This deal, if successful, is expected to increase Nigeria’s oil production, boost government petrol dollar earnings, support the naira and accelerate the government’s plans for gas development.
The deal, however, still requires the final approval of President Bola Tinubu, who currently holds the portfolio of minister of petroleum resources.
“NUPRC has approved the sale and made the recommendation to the minister of petroleum for approval. This is on the minister’s table. All ‘next steps’ await the minister’s consent,” a senior government source said.
Another senior government source added, “As you know, the minister, who doubles as president, has been out of the country. As the minister has not yet given his approval, all next steps – statutory payments – await his consent.”
The British energy giant pioneered Nigeria’s oil and gas business beginning in the 1930s. It has struggled for years with hundreds of onshore oil spills as a result of theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits.
Shell in January announced that it had reached an agreement to sell its onshore assets in the Niger Delta region to Renaissance and focus on deepwater and integrated gas investments.
The buyer, the Renaissance consortium, comprises ND Western, Aradel Energy, First E&P, Waltersmith, all local oil exploration and production companies, and Petrolin, a Swiss-based trading and investment company.
Sources said Shell executives have promised to assist in speedily developing Bonga assets, support an increase in oil production and accelerate the government’s plans for gas development if the Shell/Renaissance deal sees the light of the day.
“They want to put $7 billion down to develop Bonga and in three years help local operators develop an additional 300,000 barrels per day (bpd) to 500,000 bpd. They also want to stake partnership to ensure that the gas part of the deal is quickly done to benefit Nigeria,” one of the senior government sources said.
Efforts to reach Olaide Shonola, head of public affairs at NUPRC, via calls or messages proved abortive as at the time of writing these reports.
Implications for Bonga
While the deal promises to inject new energy into Nigeria’s oil and gas sector, experts are closely examining its potential impact on Bonga’s production and development plans.
Bonga, Nigeria’s first deepwater oil field, can currently produce 225,000 bpd of crude oil and 150 million standard cubic feet (scf) per day of gas which feeds the Nigeria Liquefied Natural Gas (NLNG) plant at Bonny.
Developing Bonga Southwest had been expected to add around 1 billion barrels to Nigeria’s oil reserves. Shell had previously said it would develop the Bonga Southwest project across three phases with a total potential yield of 3.2 billion barrels.
Output from the field was one of the projects Nigeria was banking on to raise production to around 3 million bpd by 2023, the Nigerian National Petroleum Company (NNPC) officials said.
Nigeria, which produces high-quality light sweet crude oil, has seen its production slump to multi-decade lows, due to operational, technical and sabotage issues.
Nigeria can pump around 2.2 million bpd of crude and condensate but output languished near 1.3 million bpd in July 2024, according to NUPRC’s estimates.
Developing the Bonga Southwest will cost $10 billion, according to estimates by the NNPC, the concessionaire of the field.
The bulk of Bonga Southwest’s resources are located in OML 118, but it also extends to OMLs 132 and 140, operated by US major Chevron, where it is called Aparo. Other partners in the project are France’s TotalEnergies and Italy’s Eni.
Assets at stake for divestment
Shell said it has structured the deal to maintain Shell Petroleum Development Company of Nigeria Limited (SPDC) operational capabilities to support the SPDC Joint Venture (SPDC JV).
Data sourced from Shell Nigeria’s Briefing Notes 2023 showed the operating assets of SPDC JV include: 250 producing oil wells (189 West assets and 61 East assets); 37 producing gas wells (4 West assets and 33 East assets); four gas plants and two onshore oil export terminals.
Other partners in the SPDC JV include: the NNPC (55 percent), Total Exploration and Production Nigeria (10 percent) and Nigeria Agip Oil Company (5 percent).
As part of the transition, SPDC’s employees will remain with the company under the new ownership.
Shell’s 25.6 percent interest in Nigeria’s Liquefied Natural Gas (NLNG) plant is not included in this transaction.
Shell’s presence in Nigeria will still be significant post-sale, with three businesses that will also remain outside the scope of the deal.
These include: Shell Nigeria Exploration and Production Company, which operates in the deepwater Gulf of Guinea; Shell Nigeria Gas, which supplies gas to local industries and commercial customers; and Daystar Power Group, which is engaged in offering solar power solutions across West Africa.
Win for indigenous companies
The Renaissance consortium comprises some of Nigeria’s most respected upstream companies with demonstrated track records of redeveloping mature assets in the Niger Delta.
Individually, each of Renaissance’s shareholders has also demonstrated an ability to operate in Nigeria and maximise domestic value creation. Aradel Holdings has grown an integrated oil, gas and refining business around Ogbele that has continued to expand over the years.
Waltersmith follows a similar pattern as operator of the producing Ibigwe marginal field and the Ibigwe modular refinery. First E&P successfully commissioned the Anyala-Madu shallow water hub in 2020 and is working with Dangote on achieving first oil at the Kalaekule Field soon.
Nigeria is currently faced with a gas supply shortage that must be addressed to meet the objectives of the ‘Decade of Gas,’ which seeks to grow gas penetration and develop a gas-based economy that is more sustainable and spurs industrialisation.
As Nigeria seeks to grow gas production, processing, and distribution, Renaissance will become a pillar of the country’s gas monetisation strategy and a critical partner to the public and private sector players seeking to expand the country’s gas value-chain.
In that regard, the appointment of Tony Attah, former Shell executive and managing director/CEO of Nigeria LNG for more than five years, as Renaissance’s first MD/CEO is not insignificant.
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Insurance
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.
The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.
Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.
The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.
The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.
Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.
“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.
He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.
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According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.
Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.
The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.
Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.
Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.
The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.
The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.
As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.
Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.
Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.
The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.
The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.
Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.
Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.
The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.
With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Business
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.
The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.
During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.
NMDPRA officials subsequently sealed the facility pending further investigation.
Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.
He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.
Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.
“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.
“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.
The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.
“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.
He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.
According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.
“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.
Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.
Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.
“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.
The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.
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Auto
EXEED Sets Sights on Nigeria’s Luxury Car Market, Showcases Technology, Design Vision
EXEED Sets Sight on Nigeria’s Luxury Car Market, Showcases Technology, Design Vision
Versat Automobile Limited, the Nigerian representative of EXEED, is stepping up efforts to introduce the premium automotive brand to the country, offering prospective customers a closer look at its technology, design philosophy and vision for the future of mobility.
The move signals a new phase in EXEED’s Nigerian market entry, as the company seeks to establish its identity in an increasingly competitive premium vehicle segment where technology, performance, comfort and ownership experience are becoming important considerations for buyers.
Following its initial introduction to Nigeria in August, Versat Automobile is advancing the brand’s pre-launch activities by highlighting the philosophy and engineering thinking behind EXEED, a premium automotive marque within the Chery Automobile family.
Drawing on Chery’s extensive investment in automotive research and development, EXEED’s technology proposition covers vehicle architecture, powertrain engineering, intelligent cabin systems and connected driving technology.
However, the brand says its approach to innovation goes beyond simply adding more technological features to vehicles. Rather, it focuses on integrating intelligence, convenience, connectivity and performance to improve the overall driving experience and respond to the expectations of modern motorists.
Design is another major pillar of EXEED’s identity, with its vehicles combining distinctive exterior styling, lighting, detailing and cabin architecture with functionality and everyday usability.
The company’s approach reflects an evolving definition of premium mobility, where luxury is no longer determined solely by a vehicle’s appearance but also by how it feels, functions and interacts with occupants.
At the heart of the brand is its philosophy, Born for More, which is reinforced by what it describes as its Spirit of Exploration.
The philosophy is built around challenging conventions, looking beyond familiar boundaries and pursuing new possibilities. It targets customers who seek experiences beyond the ordinary and view mobility as more than simply moving from one destination to another.
Versat Automobile believes this positioning could resonate with Nigeria’s evolving premium automotive market, where buyers are increasingly considering technology, contemporary design, performance, comfort and the overall ownership experience when making purchasing decisions.
Christopher Irumudomon, General Manager, Sales, Versat Automobile Limited, said the introduction of EXEED was about presenting Nigerians with a different perspective on premium mobility rather than merely adding another vehicle brand to the market.
“The introduction of EXEED is about more than bringing another automotive brand to Nigeria. It is about introducing a different perspective on premium mobility, one that brings together technology, design, performance and the freedom to explore.
“EXEED has a distinctive philosophy and a clear vision for what it wants to represent, and we are excited to give Nigerians a closer look at the brand and what it has to offer,” he said.
As part of its broader engagement with the global technology and mobility ecosystem, the Versat team is also scheduled to participate in the International User Summit in China in October.
The visit is expected to provide opportunities for further engagement with Aimoga, a high-end robotics brand, highlighting the growing intersection between technological innovation, robotics and future mobility.
The engagement underscores the broader technological direction that EXEED seeks to associate with its premium brand identity.
Versat Automobile said further details about EXEED, including its products, technology and design philosophy, would be unveiled as the Nigerian pre-launch programme progresses.
Established in 2024, Versat Automobile Limited made its Nigerian market debut in 2026 with C&C Trucks and is building its portfolio around globally positioned automotive brands.
The company says its operations are guided by a commitment to performance, durability, quality, reliability and customer support, with EXEED representing its entry into the premium passenger vehicle segment.
For Nigeria’s automotive market, the forthcoming arrival of EXEED introduces another contender into the premium mobility conversation, with its eventual success likely to depend not only on the appeal of its technology and design but also on how effectively its Nigerian representative delivers on customer expectations.
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