Concern surfaces over planned acquisition of Shell’s onshore assets by REAC

Like the acquisition of Nigeria’s second oldest bank, Union Bank of Nigeria (UBN) by a lesser know bank, Titan Trust Bank, another uproar has emerged over the recent announcement by British energy company, Shell over the planned $2.4 billion sale of its onshore assets to Renaissance Africa Energy Company Limited (REAC).

Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group, confirmed the deal.

This deal sparked an uproar from oil workers under the aegis of PENGASSAN who rejected the planned sale insisting that the group being speculated to acquire these assets is unknown to it.

More worrisome, the union alleged that the buying entities have no proven track record of having the capacity to manage such diverse assets.

‘’The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) attention has been brought to the press release announcing the intended sale of Shell Petroleum Development Company Limited (SPDC) Onshore Assets to the Renaissance group.

READ AALSO: Shell to sell Nigeria onshore oil business to local consortium for $1.3bn

“A group of consortiums consisting of ND Western Limited, Aradel Holdings Pic. The Petrolin Group, FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group.

‘’Our Shell/SNBO Branch of PENGASSAN has further communicated all subsequent information presented to our members by Shell Management on the planned sale.

“Having appraised the situation, reviewed the presentation and carried out preliminary findings, we wish to state as follows: The group is unknown to us and thus it’s an assemblage of unknown entities with no proven track record in managing such diverse assets.

“We reject without equivocation all the terms affecting employees that were communicated in the presentation to our members”.

“Continuing, the union added, ‘’The group must come clean with its intention(s) and be ready to have serious engagement with the Association and not the jamboree that Shell Management is currently engaging in.We have communicated to our Shell/SNBO Branches not to be distracted but to focus on the CBA negotiation that is due about a week from now.

“The industry regulator, JV Asset partners (NNPCL, Non-Operated Asset Partners) and other stakeholders are hereby put on notice.’’