In a significant development, Nigeria's oil minister has granted approval for Shell's $2.4 billion asset sale to Renaissance Group, marking the end of Shell's nearly a century-long operations in Nigerian onshore oil and gas ¹. This move is part of a broader retreat by Western energy companies from Nigeria, including Exxon Mobil, Italy's Eni, and Norway's Equinor.
The approved sale includes onshore and shallow-water assets, which are estimated to hold 6.73 billion barrels of oil and condensate, as well as 56.27 trillion cubic feet of gas. Renaissance Group, a consortium of five companies, including ND Western, Aradel Energy, First Exploration & Production (E&P), Waltersmith, and Petrolin, will take over the assets.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had initially blocked the sale in October, citing Renaissance's inability to demonstrate its capacity to manage the assets. However, the oil minister's approval marks a significant step forward for the deal, which was first announced in January.
Renaissance Group has welcomed the approval, stating that it marks a significant step forward from the announcement of the sale and purchase agreements in January. The company is committed to leveraging its expertise and resources to drive the growth of Nigeria's energy industry and contribute to the nation's economic development.
The approval of the sale is a significant milestone for Nigeria's energy sector, which has seen a surge in investment in recent years. The country is seeking to increase its oil production and reduce its dependence on imported fuels.
In related news, Shell's Nigerian subsidiary has announced a final investment decision on Bonga North, a deep-water project off the coast of Nigeria. The project, which will help maintain oil and gas production at Bonga, will be connected to Shell's Floating Production Storage and Offloading facility, where the oil company has a 55% stake.
The Nigerian government has been working to create a more favorable business environment for energy companies, with President Bola Tinubu announcing a series of reforms aimed at increasing investment in the sector. The approval of Shell's asset sale to Renaissance Group is a significant step forward for these efforts, and is expected to pave the way for further investment in Nigeria's energy sector.
Overall, the approval of Shell's $2.4 billion asset sale to Renaissance Group marks a new chapter in Nigeria's energy sector, and is expected to have significant implications for the country's economy and energy industry.
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