Aradel Holdings Plc has announced a binding agreement to acquire an additional 40% equity stake in ND Western Limited from Petrolin Trading Ltd, a move that positions the indigenous energy group for greater dominance in Nigeria’s upstream oil and gas industry.
A corporate disclosure filed with the Nigerian Exchange (NGX) on Friday revealed that the deal will be executed through Aradel’s wholly owned subsidiary, Aradel Energy Limited, reinforcing the company’s influence across the Western Niger Delta. The agreement marks one of the most significant transactions in Nigeria’s energy sector this year, consolidating local ownership of key hydrocarbon assets.
Aradel Energy, which already holds a 41.67% stake in ND Western, will see its ownership rise substantially upon completion of the acquisition. The move effectively gives Aradel a controlling influence in ND Western, granting it greater leverage over operations and strategic decision-making.
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ND Western itself commands a 45% participating interest in Oil Mining Lease (OML) 34, one of Nigeria’s most prolific onshore assets. OML 34 is renowned for its large reserves of crude oil and associated gas and plays a dual role in Nigeria’s energy ecosystem—supporting both export revenues and domestic gas supply.
The block is also a crucial component of Nigeria’s power generation value chain, feeding major electricity plants through the Utorogu Gas Plant, one of the country’s largest. With approximately 3 trillion cubic feet (Tcf) of gas reserves, OML 34 is pivotal to Nigeria’s ongoing transition towards cleaner, gas-based energy solutions.
Through this deal, Aradel is not only boosting its production portfolio but also reinforcing Nigeria’s broader drive toward indigenous participation in upstream assets, a central goal of the Petroleum Industry Act (PIA).
Strengthening Nigeria’s Local Energy Footprint
The acquisition underscores Aradel’s long-term strategy of securing high-value, cash-generating assets that underpin national energy security.
“The transaction aligns fully with Aradel’s corporate vision for sustained portfolio optimisation, value enhancement, and national energy advancement,” said Chief Financial Officer Adegbola Adesina, who signed the disclosure.
Energy analysts believe the move reflects a new phase in Nigeria’s oil and gas evolution, where indigenous firms are increasingly stepping into roles once dominated by international oil companies. The withdrawal of majors like Shell, ExxonMobil, and TotalEnergies from onshore operations has opened opportunities for local players to take control of assets critical to domestic energy supply.
ND Western also holds 50% ownership of Renaissance Africa Energy Holding Company Limited, which oversees Renaissance Africa Energy Company Limited—operator of the Renaissance Joint Venture (JV). This joint venture is fast emerging as one of Nigeria’s most dynamic indigenous energy alliances, providing a platform for operational expansion, technology exchange, and investment attraction.
The Renaissance JV, comprising ND Western, Aradel Holdings, Waltersmith Petroman Oil, FIRST Exploration & Petroleum Development Company (First E&P), and Petrolin, represents a shift toward cooperative indigenous control of Nigeria’s hydrocarbon resources. The alliance is viewed as a blueprint for future collaboration among local operators, promoting efficiency, shared expertise, and local value retention.
Market analysts believe that consolidating ND Western’s equity gives Aradel a stronger foothold within the Renaissance network, enhancing its access to upstream and midstream growth opportunities. The acquisition is expected to accelerate Aradel’s involvement in Nigeria’s gas monetization agenda, especially as global investors pivot toward cleaner fuels.
Completion of the transaction remains subject to regulatory approvals from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Competition and Consumer Protection Commission (FCCPC), and the Minister of Petroleum Resources.
Aradel has expressed confidence in obtaining these approvals, emphasizing that it is adhering to all statutory and competition requirements. Regulatory experts say such approvals are crucial to ensuring transparency, fair competition, and alignment with Nigeria’s broader energy transition framework.
Listed on the NGX in 2024, Aradel Holdings is one of Nigeria’s few fully integrated indigenous energy companies, with operations spanning exploration, refining, and gas processing. The company currently produces around 18,000 barrels of oil per day and operates a 100 million standard cubic feet per day (scf/d) gas plant. Its 11,000 bbl/d modular refinery produces diesel, kerosene, and naphtha, reinforcing its position as a domestic energy provider amid Nigeria’s recurring fuel import challenges.
The acquisition further strengthens Aradel’s refining and upstream integration, giving it end-to-end control over the production, processing, and marketing of hydrocarbons. Industry experts note that Aradel’s steady capital discipline and investment in refining capacity make it a model for other indigenous firms seeking to compete globally.
The Consortium and Its Broader Impact
ND Western was incorporated in 2011 as a Special Purpose Vehicle (SPV) to acquire Shell’s divested interest in OML 34. It is jointly owned by Aradel Holdings, Petrolin Trading, FIRST E&P, and Waltersmith Petroman Oil.
Each member of the consortium contributes unique strengths to the group’s operations. Waltersmith, a pioneer in modular refining, operates the Ibigwe Field (OML 16) and produces multiple refined products. In contrast, First E&P, which operates OMLs 83 and 85, produces about 57,000 barrels of oil per day and has exported over 50 million barrels since inception. Petrolin, based in Switzerland, produces around 17,000 barrels of oil equivalent per day across Africa and the Middle East and invests heavily in infrastructure and mining.
Together, these companies have become a cornerstone of Nigeria’s indigenous energy strategy, promoting local content, employment creation, and energy diversification. Their joint ownership of assets like OML 34 ensures that a significant portion of Nigeria’s oil and gas wealth remains within the domestic economy.
Aradel’s acquisition also coincides with a global realignment in energy investment. As international majors pivot toward renewables and divest from mature oil assets, Nigerian independents have been expanding their footprint through strategic acquisitions.
Analysts note that Aradel’s bold move reflects growing investor confidence in Nigeria’s petroleum reforms under the PIA, which seeks to provide fiscal stability and promote indigenous ownership. With Nigeria’s proven gas reserves estimated at over 200 Tcf, the emphasis on gas production and processing represents a major opportunity for local operators like Aradel to lead the next phase of growth.