Nigeria’s oil regulator has blocked Shell’s proposed $1.3 billion sale of its onshore oilfields to the Renaissance group, citing the buyer’s lack of qualification to manage the assets. The decision comes amid Shell’s efforts to exit its onshore operations in Nigeria and focus on more profitable deepwater ventures.
Shell Petroleum Development Company (SPDC), the subsidiary that manages the assets, confirmed it is cooperating with the regulator by providing all necessary information, but did not directly address the regulator’s rejection.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) raised concerns over Renaissance group’s ability to effectively manage the oilfields, stating that the consortium has been unable to operate at least 50% of its existing assets, leading to the sale being declined.
Earlier this year, Shell had agreed to sell its Nigerian onshore operations to a consortium of five mostly local companies, marking a strategic shift as the energy giant looks to prioritize deep offshore projects.
Requests for comment from the NUPRC and Renaissance group remain unanswered. Shell indicated that ongoing discussions with the government will continue, and it will supply all necessary information to support the approval process.
Shell’s planned exit follows a broader trend among major oil companies such as Exxon Mobil, Eni, and TotalEnergies, which have been divesting from Nigerian onshore assets to focus on offshore investments.
