The Nigerian energy company on Wednesday said Aradel Holdings Plc has completed the acquisition of an additional 40 per cent equity interest in ND Western Limited from Petroline Trading Limited, increasing its total shareholding to 81.67 per cent and turning NDW into a subsidiary.
The transaction, which received regulatory approvals from the Nigerian Upstream Petroleum Regulatory Commission and the Federal Competition and Consumer Protection Commission, increases Aradel's wholly owned unit Aradel Energy Limited's stake in NDW from 41.67 percent.
The deal increases Aradel's indirect ownership in Renaissance Africa Energy Company Limited from 33.3 percent to 53.3 percent, giving it majority control.
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NDW holds a 45 percent participating interest in Oil Mining Lease 34 in the Western Niger Delta and owns half of Renaissance Africa Energy Holding Company Limited, Renaissance Africa Energy's parent company.
“This acquisition is in line with Aradel's long-term strategy of disciplined portfolio consolidation, asset base expansion and sustainable value creation,” the company said in a statement. The move strengthens Aradel's position in Nigeria's upstream oil and gas sector while supporting improved operating efficiencies across its asset portfolio.
Aradel Holdings Chief Executive Officer Adegbite Falade called the transaction “another milestone” in the company's growth strategy. “Increasing our equity interest in ND Western strengthens Aradel's position as a leading indigenous integrated energy company and enhances our ability to drive long-term value for shareholders through scale, operational efficiency and portfolio optimization,” he said.
The deal follows a wave of consolidation in Nigeria's oil sector as indigenous producers expand their footprint amid pressure from the federal government to increase local participation in the energy industry.
