• Standard Bank arranged a $250m facility to fund Aradel Energy’s expansion and acquisition plans.
• The deal allows Aradel to raise its stake in ND Western to 81.67% and gain majority control.
• The transaction strengthens the role of Nigerian producers as international majors exit onshore assets.

Standard Bank has completed a $250 million financing facility to support the strategic expansion of Nigerian oil company Aradel Energy. The company operates the Ogbele and Omerelu onshore marginal fields, as well as the shallow-water OPL 227 license. The facility will fund an acquisition, refinance existing debt, and support higher production across the group’s assets.

The transaction is primarily aimed at enabling Aradel to acquire an additional 40% stake in ND Western from Petrolin Trading. Aradel’s ownership will rise from 41.67% to 81.67%, giving it majority control and direct decision-making power over the management and development of ND Western’s assets.

Consolidation in the Niger Delta

ND Western holds a 45% interest in OML 34, one of the Niger Delta’s historic oil blocks, which produces about 400 to 420 million cubic feet per day. The company also owns 50% of Renaissance Africa Energy, which was involved in the acquisition of Shell’s onshore assets in 2024. By increasing its stake in ND Western, Aradel automatically strengthens its exposure to these assets. Its indirect stake in Renaissance will now rise to 53.3%, making it the dominant shareholder in the entity.

Aradel chief executive Adegbite Falade said the acquisition of additional shares in ND Western strengthens the group’s presence across the oil and gas value chain and supports its long-term growth objectives. Aradel is an integrated energy group active in upstream, midstream, and downstream operations. Founded in 1992 as Niger Delta Exploration & Production, the company commissioned a gas processing plant in 2012 with a capacity of 100 million cubic feet per day and eliminated routine flaring at the Ogbele field. It supplies gas to the domestic market.

Early shift toward local control

As international oil majors continue to exit onshore and shallow-water assets in Nigeria, the transaction highlights the growing role of local producers in taking control of the country’s oil sector, with support from African financial institutions. These players are reviving long-neglected blocks, optimizing existing infrastructure, and mobilizing significant financing to scale up operations.

Regulators say local companies now account for more than half of Nigeria’s crude oil production, up from about 40% a few years ago. The shift aligns with public policies promoting local content and national participation, and reflects Nigeria’s push to strengthen energy sovereignty while supporting economic activity.

The challenge will be to sustain production amid operational, security, and environmental risks, while ensuring responsible resource management. The move toward a more nationally controlled oil sector could bring lasting changes to Nigeria’s petroleum industry.

Olivier de Souza