Federal Government Disapproves Shell’s $2.4 Billion Deal With Renaissance

Federal Government Disapproves Shell’s $2.4 Billion Deal With RenaissanceThe Nigerian government has rejected Shell’s $2.4 billion divestment of its onshore and shallow water assets to the local consortium, Renaissance. These assets include approximately 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas.....KINDLY READ THE FULL STORY HERE▶

Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced the decision, noting that while five divestment applications were processed, only four received approval. Notably, ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy was among the sanctioned transactions.

During an event celebrating the NUPRC’s three-year anniversary, Komolafe did not provide specific reasons for the government’s rejection of the Shell-Renaissance deal. However, he underscored the government’s commitment to ensuring that all transactions comply with the regulatory standards outlined in the Petroleum Industry Act (PIA). He stated, “We have processed four transactions, and all of them have received ministerial consent.”

The approved transactions include:

•Equinor’s Project Odinmim: Approved under the PIA with ministerial consent.

•Agip’s sale to Oando: Processed per regulatory guidelines and approved.

•ExxonMobil’s transaction with Seplat: Approved with ministerial consent.

•TotalEnergies’ 10% divestment to Telema Energies: Also approved with ministerial consent.

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

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