Aradel to Acquire 40.0% Equity Interest in ND Western Limited
Aradel Holdings Plc has announced that its wholly owned subsidiary, Aradel Energy Limited, had entered into a definitive agreement to acquire an additional 40.0% equity interest in ND Western Limited (NDW) from Petrolin Trading Ltd.
In a regulatory disclosure, the oil company explained that ND Western holds a 45% participating interest in OML 34, a producing Oil Mining Lease located in the Western Niger Delta.
Public details available highlighted that OML 34 contains material crude oil and associated gas reserves contributing to Nigeria’s domestic energy supply and exports.
In addition, NDW owns 50% of the share capital of Renaissance Africa Energy Holding Company Ltd, the parent company of Renaissance Africa Energy Company Limited, which operates the Renaissance Joint Venture.
According to CardinalStone Securities Limited, ARADEL currently owns 41.7% of NDW. Upon regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Federal Competition and Consumer Protection Commission (FCCPC), and Ministerial Consent.
ARADEL’s total shareholding in NDW is expected to increase to 81.7%, giving it majority control. In addition to this, given the effective 50.0% stake of NDW in the Renaissance African Energy Consortium (RAEC), ARADEL could potentially benefit from an indirect interest in the SPDC onshore assets via ND Western of 41.4% vs 20.8% previously.
Cumulatively, ARADEL would have an effective stake of about 53.9%- 41.4% indirectly through ND Western Limited and 12.5% directly – the investment firm said.
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