Shell asset sale halted in Niger delta

Nigeria has halted the sale of Shell’s entire onshore and shallow-water oil and gas assets in the Niger Delta, according to the country’s upstream regulator. NUPRC CEO Gbenga Komolafe announced this decision at an event in Abuja, stating that the deal “could not scale (the) regulatory test,” though he did not provide further details.

In January, Shell had announced an agreement to sell these assets to the Renaissance consortium for up to $2.4 billion, aiming to shift its focus to deepwater and integrated gas investments. The assets are estimated to contain 6.73 billion barrels of oil and condensate, along with 56.27 trillion cubic feet of gas.

Shell’s attempt to exit the Niger Delta follows similar moves by other oil majors like Exxon Mobil, TotalEnergies, and Eni, largely due to security concerns. Environmental activists and local communities opposed the Shell-Renaissance deal, resulting in multiple lawsuits against Shell for environmental restoration and compensation related to historical oil spills.

In April, the NUPRC began reviewing Shell’s divestment plans to the consortium, which includes four Nigerian companies and an international energy group.