Nigeria’s Regulator Rejects Shell’s Proposed $1.3 Billion Onshore Oilfield Sale

Nigeria has turned down Shell’s planned $1.3 billion sale of its onshore oilfields to Renaissance Group, citing the buyer’s lack of qualifications to manage the assets.

According to a Wednesday ThisDay newspaper report, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) refused to approve the transaction because it was not convinced that the Renaissance consortium could manage the assets effectively. 

On January 16, Shell announced its decision to exit its onshore and shallow water operations in Nigeria after reaching a deal to sell these assets to a consortium of five primarily local companies.

However, it was reported that the companies within the group have not been able to successfully operate at least 50 per cent of the assets they currently control.

West Africa Weekly observed that International Oil Companies (IOC) in Africa often prefer offshore exploration to avoid interaction with local populations or corporate social responsibilities targeted at local beneficiaries.

IOCs like Exxon Mobil, Eni, and TotalEnergies have recently announced the sale of onshore assets in Nigeria while holding on to their more profitable offshore assets.

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Oluwatobi Odeyinka

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