Nigeria’s oil regulator has rejected Shell’s $1.3 billion sale of its onshore oilfields to Renaissance Group, ThisDaynewspaper reported.
The regulator determined that Renaissance is not qualified to manage the assets.
Shell, which owns the assets through Shell Petroleum Development Company (SPDC), confirmed it is providing necessary information to the regulator but did not directly respond to the report.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) refused approval, stating that Renaissance could not demonstrate its capability to manage the assets.
ThisDay reported that companies in the group failed to operate at least 50% of their existing assets.
On January 16, Shell announced its decision to exit Nigeria’s onshore operations and sell to a consortium of five primarily local firms.
Shell plans to focus on deep offshore fields, which are seen as more profitable.
Shell stated it remains in communication with the government to complete the sale process.
The company assured it would provide all required information for regulatory approval.
Shell’s exit follows a trend among global oil firms like Exxon Mobil and TotalEnergies, who have sold Nigerian assets to prioritize more profitable operations.
