Sterling Oil Exploration and Energy Production Company Ltd., the Nigerian energy firm associated with Indian businessmen Nitin and Chetan Sandesara, has completed the acquisition of Italian energy group Eni’s Nigerian subsidiary through its wholly owned unit, Apex Global Energy Limited (APEX).

Eni announced on Monday that it had completed the sale of Agip Energy and Natural Resources (Nigeria) Limited (AENR), a company involved in onshore and shallow-water hydrocarbon exploration and production in Nigeria.

Sterling expands its Nigerian oil and gas interests

APEX is wholly owned by Sterling, one of Nigeria’s leading onshore oil operators. Sterling was established in 2005 and is part of the Sandesara Group’s energy business. The transaction gives Sterling’s subsidiary control of AENR and its 5% interest in the Renaissance joint venture, adding to the Nigerian operator’s upstream portfolio.

AENR’s principal asset is its 5% stake in the Renaissance joint venture, which participates in Nigeria’s onshore and shallow-water oil and gas industry. The joint venture has Renaissance as its operator with a 30% interest, while TotalEnergies holds 10% and the Nigerian National Petroleum Company Limited, Nigeria’s state-owned energy company, holds 55%. AENR accounts for the remaining 5% interest.

The acquisition transfers Eni’s ownership of AENR to APEX, placing the subsidiary and its joint-venture interest under Sterling’s ownership. The transaction received approval from all relevant authorities before completion, according to Eni.

Eni exits non-strategic upstream assets

The sale forms part of Eni’s strategy to optimise its upstream operations by rebalancing its portfolio and divesting assets it no longer considers strategic.

Despite completing the divestment, Eni will maintain a presence in Nigeria through the exploration and development of deep offshore assets and its participation in Nigeria LNG, the country’s major liquefied natural gas project.

The transaction reflects a broader shift in ownership across Nigeria’s oil and gas sector, where international energy companies have been selling selected assets while local operators take on greater responsibility for their development and production.

Shell also advances Nigerian divestment

Eni’s deal follows a separate move by its larger rival Shell, which said in October it would sell its Nigerian domestic gas business to Vaaris Energy.

Shell’s proposed transaction concerns its domestic gas business, while Eni’s completed sale involves AENR’s onshore and shallow-water hydrocarbon activities and its interest in the Renaissance joint venture.

The two transactions underscore continuing portfolio changes among international energy companies operating in Nigeria, although the assets and business activities involved differ.

For Sterling and its subsidiary APEX, the acquisition adds an established upstream business and a stake in a joint venture involving major industry participants. The longer-term impact will depend on how the company manages AENR’s assets and investment requirements following the transfer.