Aradel Holdings PLC (Aradel), via its wholly owned subsidiary Aradel Energy Limited, has entered into a definitive agreement to acquire an additional 40 per cent equity interest in ND Western Limited (NDW) from Petrolin Trading Ltd. The transaction will increase Aradel’s total stake in ND Western from approximately 41.67 per cent to a commanding 81.67 per cent, giving it a majority controlling position.
Strategic Context and Asset Overview
ND Western was established on 20 April 2011 as a special purpose vehicle by a consortium that included Aradel, Petrolin Trading Ltd, FIRST Exploration & Petroleum Development OML 34 Limited (First E&P), and Walter-Smith Exploration and Production Limited. The purpose of the vehicle was to hold a participating interest in onshore Nigerian block OML 34, a key onshore asset in the Western Niger Delta.
ND Western holds a 45 per cent interest in OML 34, which spans some 950 square kilometres and encompasses producing fields such as Utorogu, Ughelli East, and Ughelli West. The block is reported to have a combined crude oil production capacity of roughly 90,000 barrels per day and approximately 3 trillion cubic feet of gas reserves. In addition, ND Western holds a 50 per cent interest in Renaissance Africa Energy Holding Company Ltd.
For Aradel, which has upstream, midstream, and downstream operations, the deal aligns with its stated strategy of expanding indigenous participation and securing greater control in assets with meaningful reserves and production potential.
Transaction Details and Conditions
Under the terms of the agreement, Aradel will acquire the 40 per cent stake from Petrolin Trading Ltd, subject to regulatory approvals including from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Competition and Consumer Protection Commission (FCCPC).
Upon completion of the transaction, Aradel’s shareholding in ND Western will become the majority shareholder, positioning it to steer strategic and operational decisions in respect of OML 34 and associated assets. According to industry commentary, the final figure of 81.67 per cent may reflect rounding of the stake or deal specifics.
Implications and Outlook
For Aradel – The increased stake enhances its exposure to core upstream production and gas assets, which are increasingly strategic in Nigeria’s energy transition and domestic gas monetisation agenda. It may allow Aradel to capture a higher share of revenue, boost reserves, and realise synergy across its downstream and midstream portfolio. Also, given global trends of major oil companies divesting onshore African assets, the move taps into an opportunistic market.
For the Nigerian Energy Sector – The deal underscores a broad push for greater local participation and ownership in energy assets. By deepening an indigenous company’s control over a major producing block, the transaction may signal confidence in the local private sector’s capability to operate at scale. However, regulatory approvals remain key, and the realisation of production and monetisation potential depends on infrastructural, security, and logistics factors.
Risk and Considerations – Execution risk remains, as the deal is subject to regulatory clearance. The upstream sector in Nigeria is also challenged by security issues, pipeline theft, and infrastructural bottlenecks. For Aradel, scaling production, integrating operations, and managing costs will be critical to realising value from the acquisition.
Voice from the Deal
In its announcement dated 24 October 2025, Aradel said the investment “aligns with our ambition to deepen our asset base across the oil and gas value chain and deliver sustainable value to our shareholders and host communities.”
Industry observers noted that under the leadership of Adegbite Falade, Aradel’s upstream push has been aggressive, and the ND Western stake acquisition represents a major milestone in controlling a prime onshore block.
