The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has greenlit Shell International Plc’s proposal to sell its onshore assets to the Renaissance consortium in a transaction valued at $1.3 billion. This move aligns with the Petroleum Industry Act (PIA), according to senior government sources who spoke to BusinessDay.
Thank you for reading this post, don't forget to subscribe!The deal, involving Shell’s 75-year-old onshore assets, is anticipated to enhance Nigeria’s oil production, boost government revenue from petrol dollars, support the naira, and advance the government’s gas development agenda. However, final approval from President Bola Tinubu, who also serves as the Minister of Petroleum Resources, is still required.
“NUPRC has approved the sale and forwarded the recommendation to the minister of petroleum for final approval. The process is now awaiting the minister’s consent,” a senior government official stated. Another source added, “The minister, who is currently out of the country, has not yet given his approval, which is necessary for proceeding with statutory payments and next steps.”
Shell, a pioneer in Nigeria’s oil sector since the 1930s, has faced numerous challenges, including oil spills and high-profile lawsuits due to theft, sabotage, and operational issues. The company announced in January its plan to divest its onshore assets in the Niger Delta to focus on deepwater and integrated gas investments.
The Renaissance consortium, which includes ND Western, Aradel Energy, First E&P, Waltersmith, and Swiss-based Petrolin, is set to receive Shell’s assets. Shell has pledged to support the development of Bonga assets and increase oil production. The consortium aims to invest $7 billion to boost production by 300,000 to 500,000 barrels per day and expedite gas development for Nigeria.
In response, Olaide Shonola, Head of Public Affairs and Corporate Communication at NUPRC, clarified that the commission has not yet officially approved the sale. “The information in the publication did not come from the Commission. We will communicate our position on the transaction to the public in due course,” Shonola said on Wednesday.
