The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has debunked reports that it approved Shell International’s bid to sell its onshore assets to Renaissance in a $1.3 billion deal.
Olaide Shonola, the Spokesperson of NUPRC, made the clarification, in a statement on Wednesday, following a report that it had granted regulatory approval to the acquisition deal.
“The attention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been drawn to a publication in the media of September 11, 2024, purporting that the Commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion,” the statement partly read.
“As part of the Commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time.
“Industry stakeholders and the general public are advised to disregard the publication as it is baseless.”
Recall that in January this year, Shell announced the sale of its onshore subsidiaries to Renaissance.
Shell had announced its intention to sell off its onshore oil fields and gas to Renaissance, a consortium of five Nigerian companies, which include ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.
The deal is to enable Shell to exit from the challenging operating environment in the Niger Delta region, though it will continue its operations in offshore and deep offshore areas.
According to the report, Shell had expressed satisfaction with the landmark transaction, noting that the company could earn additional funds of up to $1.1 billion.
This sale is part of Shell’s strategic shift from its onshore commitments in Nigeria due to operational challenges, including oil theft and pipeline vandalism.
This divestment by Shell would revolutionise Nigeria’s oil sector, pointing to a shift towards local ownership and management of oil assets.
Moreover, though Nigerian firms would face both challenges and opportunities with regard to technical and financial capabilities, the deal has the potential to energise the local oil industry.
However, the acquisition deal is yet to receive regulatory approval more than seven months after the report.