The Federal Government has declined to approve Shell’s $2.4 billion divestment of its onshore and shallow water assets to the local consortium, Renaissance. The assets in question include an estimated 6.73 billion barrels of crude oil and condensate, as well as 56.27 trillion cubic feet of gas.
Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced the government’s decision and noted that while five divestment applications were processed, only four received approval. One of the notable deals that gained approval was ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy.
During an event celebrating the NUPRC’s three-year anniversary, Komolafe did not disclose the specific reasons for blocking the Shell-Renaissance deal. However, he emphasized the government’s dedication to ensuring that all transactions adhere to the regulatory standards outlined in the Petroleum Industry Act (PIA).
He stated, “We have processed four of the transactions, and four of them have received ministerial consent.” The approved transactions include the Equinor–Project Odinmim deal, which was also approved in accordance with the PIA and granted ministerial consent.