Photo caption: NUPRC logo
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rejected Shell’s planned $1.3 billion sale of its onshore assets to the Renaissance Consortium, sources familiar with the matter said.
The sale, which required NUPRC’s approval under the Petroleum Industry Act (PIA), would have seen Shell divest its stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium including ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and Waltersmith Group.
NUPRC CEO Gbenga Komolafe said the commission had established a divestment framework in April to assess applications for ministerial approval of Shell’s divestment plans. The framework covers various aspects, including technical expertise, financial stability, legal compliance, environmental remediation, and host community engagement.
Komolafe emphasized that Renaissance needed to demonstrate its technical capability to manage the assets effectively.
The deal’s value had declined from $2.4 billion in January 2024 to $1.3 billion by August, partly due to an ongoing legal dispute between Shell and Global Gas and Refining Limited. The local firm has sought a court injunction to prevent NUPRC from approving the sale, citing contractual disagreements with Shell.
Shell, in response, clarified that it was not directly selling the onshore assets to Renaissance for $1.3 billion but was instead transferring shares.
The proposed sale has also faced opposition from a coalition of 40 NGOs, including Amnesty International, which urged that the transaction be halted until Shell’s environmental impact is fully assessed. The Petroleum and Natural Gas Senior Staff Association of Nigeria also rejected the sale, raising concerns about the consortium’s credentials and citing several allegations against it.
