Nigerian Government Blocks Shell’s $2.4 Billion Onshore Asset Sale to Renaissance Africa Energy

The Nigerian government has rejected Shell’s plan to sell its onshore oil assets in the country to Renaissance Africa Energy Company Limited. Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), made this announcement during the launch of the “Project One Million Barrels of Oil per Day” (mmbpd) initiative in Abuja on Monday.

Komolafe explained that the proposed deal failed to pass regulatory approval, despite Shell’s efforts to offload the assets. In January, Shell Petroleum Development Company of Nigeria Limited (SPDC) reached an agreement with a consortium of five companies to sell its onshore business for up to $2.4 billion, including an initial $1.3 billion payment and a further $1.1 billion upon the deal’s completion.

The sale was seen as relief for Shell, which has faced operational challenges such as sabotage, oil
theft, and environmental damage linked to spills.

However, Komolafe stated that while four out of five divestment applications received ministerial consent, Shell’s deal with Renaissance Africa Energy failed to meet the required regulatory standards.

Komolafe reiterated that divestment is a standard business practice and that Nigeria remains committed to free-market principles, allowing investors to freely enter or exit the market.

However, he emphasised that regulatory guidelines under the Petroleum Industry Act (PIA) are in place to ensure national interests are protected.

Despite this setback, Shell has clarified that it is not leaving Nigeria but is shifting its focus to deep offshore projects where it holds a competitive edge in technology and financial resources. Shell’s Managing Director in Nigeria, Osagie Okunbor, confirmed the company’s strategic realignment at the Nigerian Economic Summit last week.