In A Bold Move, FG Rejects Shell’s Multibillion-Dollar Asset Sale

In A Bold Move, FG Rejects Shell’s Multibillion-Dollar Asset Sale

The Nigerian government has refused to approve Shell’s proposed $2.4 billion sale of its onshore and shallow water assets to the local consortium, Renaissance. This divestment involves around 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas.…..CONTINUE READING 

In a statement regarding the government’s decision, Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), revealed that while five divestment applications were reviewed, only four were granted approval.

Among the approved transactions was ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy, according to reports from Naija News.

During a ceremony marking the NUPRC’s three-year anniversary, Komolafe did not provide specific reasons for the rejection of the Shell-Renaissance deal. However, he emphasized the government’s commitment to ensuring that all transactions comply with the regulatory requirements outlined in the Petroleum Industry Act (PIA).

Komolafe stated, “We have processed four of the transactions, and all four have received ministerial consent.”

The approved transactions include:

• Equinor–Project Odinmim: Approved in accordance with the PIA and granted ministerial consent.
• Agip to Oando: Processed as per regulatory guidelines and approved.
• ExxonMobil-Seplat: Approved and granted ministerial consent.
• TotalEnergies’ 10 percent divestment to Telema Energies: Also approved with ministerial consent.

According to Komolafe, this represents the first time a comprehensive regulatory framework has been established to ensure transparency in the divestment processes within Nigeria’s oil and gas sector.