Nigeria Approves $2.4 Billion Sale of Shell Onshore Assets
Nigeria’s oil minister, Senator Heineken Lokpobiri, has given the green light for the $2.4 billion sale of Shell’s onshore and shallow-water assets to Renaissance Group.
This milestone marks a significant step in the country’s oil and gas industry.
Background of the Shell Deal.
The transaction was initially announced in January but faced regulatory hurdles.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had previously blocked the deal in October.
Citing Renaissance’s inability to demonstrate adequate operational capacity for the assets .
Shell Assets and Reserves
The assets in question hold an estimated 6.73 billion barrels of oil and condensate, and 56.27 trillion cubic feet of gas.
Renaissance has expressed its commitment to managing these vital resources, describing the approval as “a significant milestone that underscores the trust in our ability to manage these vital resources” .
Implications for Nigeria’s Oil and Gas Industry.
The sale reflects a broader retreat by Western oil companies, including Exxon Mobil, Italy’s Eni, and Norway’s Equinor, from Nigeria’s onshore operations.
However, Lokpobiri has assured that the exit of Shell does not come at any loss to the country, as Nigeria will always foster a friendly environment for the oil and gas industry.
Shell’s Continued Commitment to Nigeria
While Shell is selling its onshore assets, the company is not completely exiting Nigeria.
Earlier this week, Shell announced a final investment decision on Bonga North, a deep-water project designed to sustain production at its Bonga facility, where Shell holds a 55% stake .
This project demonstrates Shell’s continued commitment to Nigeria’s offshore energy sector.
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