The Federal Government has rejected Shell’s proposed $2.4 billion divestment of its onshore and shallow water oil assets to the local consortium, Renaissance.
These assets include an estimated 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas. The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, announced the decision during an event celebrating the commission’s third anniversary. Komolafe disclosed that five divestment applications had been processed, but only four received ministerial approval.
Among the approved transactions was ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy, along with deals involving Equinor’s Project Odinmim, Agip’s sale to Oando, and TotalEnergies’ divestment to Telema Energies.
While the reason behind the Shell-Renaissance deal’s rejection was not specified, Komolafe reiterated the government’s dedication to upholding the regulatory standards set by the Petroleum Industry Act, PIA, ensuring all transactions meet legal and environmental compliance.
Government has refused to grant approval for Shell’s $2.4 billion divestment of its onshore and shallow water assets to the local consortium, Renaissance. These assets include an estimated 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas.
READ ALSO : Shell slashes hundreds of jobs in oil and gas division amid cost cutting drive
Announcing the government’s decision, Engr. Gbenga Komolafe, disclosed that while the government had processed five divestment applications, only four were approved.
One of the key deals that received approval was ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy.
Speaking at an event marking the NUPRC’s three-year anniversary, Komolafe did not provide specific reasons for the government’s decision to block the Shell-Renaissance deal.
However, he highlighted the government’s commitment to ensuring that all transactions comply with the regulatory standards established under the PIA. Komolafe stated: “We have processed four of the transactions, and four of them have received ministerial consent.”
The approved transactions include, Equinor–Project Odinmim- approved in line with the PIA and granted ministerial consent. Agip to Oando- processed according to regulatory guidelines and approved.
