ND Western Limited’s CEO, Adewale Kalejaiye, has described the company’s recent $2.4 billion acquisition of Shell’s onshore oil and gas assets in Nigeria as a historic milestone for the country’s energy sector. The deal, finalized this week, marks one of the largest asset transfers in Nigeria’s oil industry in recent years and is expected to reshape the landscape of domestic energy production.
Speaking at a press briefing in Lagos, Kalejaiye hailed the acquisition as a transformative move that will increase indigenous participation in Nigeria’s oil industry, boost production capacity, and enhance energy security.
“This acquisition is a major step towards deepening local ownership and strengthening Nigeria’s oil and gas sector,” Kalejaiye said. “It represents a shift in the industry, where Nigerian companies are taking control of assets that were historically managed by international oil giants.”
ND Western Limited, a leading indigenous oil and gas company, acquired Shell Petroleum Development Company’s (SPDC) interests in several onshore and shallow water assets. The transaction aligns with Shell’s broader strategy of divesting from onshore operations in Nigeria to focus on offshore and renewable energy investments.
Industry analysts believe this deal will have far-reaching implications for Nigeria’s oil and gas industry, including:
- Increased Local Control: With Nigerian firms now managing these key assets, the deal is expected to foster greater local investment, job creation, and technical expertise.
- Boost in Production: ND Western plans to ramp up crude oil and gas output, supporting the country’s revenue base and reducing supply disruptions.
- Infrastructure Development: The company has pledged to invest in upgrading facilities, enhancing environmental safety measures, and improving operational efficiencies.
Shell’s decision to divest from onshore assets follows a series of challenges, including pipeline vandalism, community disputes, and regulatory hurdles. The company has signaled a shift towards offshore operations, where risks are lower and returns are potentially higher.
“Shell remains committed to Nigeria’s energy sector,” a spokesperson for the company stated. “However, we are prioritizing offshore developments and renewable energy projects to align with our long-term sustainability goals.”
The Nigerian government has welcomed the acquisition, emphasizing its potential to drive local economic growth. Minister of State for Petroleum Resources, Heineken Lokpobiri, described the move as “a strong signal that indigenous companies are ready to take the lead in shaping the future of Nigeria’s oil and gas industry.”
However, some experts have raised concerns about whether Nigerian companies have the financial and technical capacity to sustain these assets effectively. Energy analyst Dr. Bayo Salako noted, “The success of this acquisition will depend on ND Western’s ability to manage operational challenges, maintain environmental standards, and ensure uninterrupted production.”
As ND Western takes over the assets, industry stakeholders will be watching closely to see how the company navigates operational hurdles, community relations, and regulatory compliance.
The deal is expected to encourage more divestments from international oil companies (IOCs), potentially opening new opportunities for indigenous players to expand their footprint in the sector.
