Nigeria’s Oil Regulator Initiates Evaluation of Shell’s Onshore Asset Divestment

Date:

ABUJA, April 29 – The Nigerian Upstream Petroleum Regulatory Commission commenced the assessment of Shell’s 75-year-old onshore assets divestment to Renaissance company, marking a significant step in the transition of ownership in the Niger Delta region.

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Shell’s decision to sell its onshore assets in January aimed to redirect focus towards Deepwater and Integrated gas investments, with Renaissance Africa Energy Company Limited, a consortium of five companies, emerging as the new investors.

Gbenga Komolafe, the chief executive of the regulatory commission, emphasized the importance of identifying a successor with both financial resources and technical expertise to manage the assets responsibly. He emphasized transparency, impartiality, and accountability in the evaluation process.

The assets in question hold a substantial volume of oil, condensate, and gas, with an estimated combined volume of 6.73 billion barrels and 56.27 trillion cubic feet, respectively.

In addition to financial and technical considerations, the regulator will also assess issues like labour relations, liabilities to workers, and obligations to host communities associated with the divestment.

Komolafe provided historical context, noting that the Shell JV assets were originally awarded as Oil Exploration Licence 1 (OEL-1) in January 1949, covering southern Nigeria and Cameroon, and were subsequently converted to Oil Mining Licences (OMLs) in 1962, with renewals in 2014 and 2018.


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