NAIRAMETRICS
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed the blockage of the $1.3 billion sale of Shell’s assets to Renaissance Group due to regulatory issues.
NUPRC’s CEO, Gbenga Komolafe, confirmed the development to Reuters in Abuja on Monday.
The assets in question hold an estimated 6.73 billion barrels of oil and condensate, along with 56.27 trillion cubic feet of associated and non-associated gas.
Komolafe stated that the deal “could not scale (the) regulatory test,” without providing further details.
In addition, environmental activists and some communities opposed the Shell-Renaissance deal, tying Shell into a string of lawsuits for environmental restoration and compensation for land and rivers damaged by historical oil spills.
Nairametrics reported in January that Shell Plc had reached an agreement to sell its Nigerian onshore oil assets to a local consortium for over $1.3 billion, subject to government approval.
Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director, confirmed the deal, highlighting it as a crucial step in the company’s strategy to streamline operations and focus on deepwater and integrated gas projects in Nigeria.
However, the upstream oil regulator, NUPRC, has stated that it will expedite approval only if Shell takes responsibility for oil spills and agrees to fund cleanup efforts in the Niger Delta.
