Shell gets approval for $2.4b asset sale to Renaissance Group

Nigeria’s oil minister, Senator Heineken Lokpobiri, has approved the $2.4 billion sale of Shell’s onshore and shallow-water assets to Renaissance Group.

The transaction was initially announced in January but faced regulatory hurdles.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) previously blocked the deal in October, citing Renaissance’s inability to demonstrate adequate operational capacity for assets holding an estimated 6.73 billion barrels of oil and condensate, and 56.27 trillion cubic feet of gas.

In a statement on Wednesday, Renaissance described the approval as “a significant milestone that underscores the trust in our ability to manage these vital resources.” Neither Shell nor the NUPRC immediately responded to requests for comment.

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.

The departures are allegedly driven by escalating security concerns, operational difficulties, and a global shift towards cleaner energy investments.

READ ALSO:Shell’s Bonga investment to boost Nigeria’s oil output by 110,000 bpd

Meanwhile, Lokpobiri has said the exit of the giant company does not come at any loss to the country, as Nigeria will always foster a friendly environment for the oil and gas industry.

“On the part of the government, once we get the necessary documents, we will not waste time to give the necessary considerations and consent,” he said.

However, Shell is not completely exiting Nigeria. Earlier this week, the company 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 our continued commitment to Nigeria’s offshore energy sector,” Shell said in a statement about the Bonga North development.