Shell’s $2.4 billion sale of its onshore and shallow sea assets to the local group Renaissance has not been approved by the federal government.
These resources include 56.27 trillion cubic feet of gas and an estimated 6.73 billion barrels of crude oil and condensate.
Only four of the five divestiture petitions that the government had processed were granted, according to Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), who made the announcement.
The sale of Mobil Producing Nigeria Unlimited by ExxonMobil to Seplat Energy was one of the major agreements that was approved.
Speaking at a celebration of the NUPRC’s third anniversary, Komolafe did not give any particular explanation for why the government had decided to thwart the Shell-Renaissance agreement.
He did, however, emphasize the government’s dedication to making sure that every transaction complies with the legal requirements set down in the Petroleum Industry Act (PIA).
“We have completed four of the transactions, and four of them have been approved by ministers,” Komolafe said.
Among the authorized trades are:
Equinor-Project Odinmim: Given governmental approval and approved in accordance with the PIA.
Agip to Oando: Processed in compliance with legal requirements and authorized.
Ministerial consent was given to ExxonMobil-Seplat.
Ministerial approval was also obtained for TotalEnergies’ 10% sale to Telema Energies.
He also underlined that this is the first time in history that a legal framework this extensive has been put in place to guarantee open divestiture procedures in Nigeria’s oil and gas industry.
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