PENGASSAN Reject Renaissance Group as The Right Firm to Purchase Shell Onshore Assets

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has come out to reject and warn the Shell Petroleum Development Company Limited (SPDC) to halt the plans to sell its Onshore Assets to the Renaissance Group because they are not sure of the strength of the firm to carry such a burden. Also, they said that the Renaissance Group is unknown to them.

According to the union, the group is an assemblage of unknown entities with no proven track record in managing such diverse assets.

This was made in a statement by Comrade Festus Osifo, the current PENGASSAN President, and signed by the the union secretary, Lumumba Okugbawa as they report that one of the companies that made up the consortium has a track record of subjugating workers and subjecting them to hardship as exemplified in the management of OML 34.

The Statement Reads,

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

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

• Another company in the group has a penchant for preventing workers from unionising and thus stiffening their condition of services.

• Any attempt to transfer the assets without resolving issues affecting our members will be met with the stiffest resistance the industry has ever witnessed.

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

Back Story 

Earlier this year, Shell Plc disclosed that it would be selling its Nigerian onshore oil and its subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium of five companies known as Renaissance for a total of $2.4 billion. This move by the company is going to terminate Shell's long operations in Nigeria.

The company said it plans to divest the SPDC for $1.3 billion, with additional payments of up to $1.1 billion. This was according to the official statement released by the company. As reported by Shell, the buyer Renaissance, is a consortium comprising ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, as reported.

Since 1930, Shell has been operating in Nigeria and has since faced many challenges such as oil spillage due to crude oil theft, sabotage, and operational issues. This has led to a decline in revenue from the company and has promoted it to relocate some parts of its operations.

What is the Renaissance Group?

The Renaissance Group is a consortium of ND Western Limited, Aradel Holdings Pic. The Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.