Shell has received approval from Nigeria’s oil minister for the sale of $2.4 billion in onshore and shallow-water assets to Renaissance Group, Renaissance said in a statement on Wednesday.
According to Reuters’ report, the approval marks the end of Shell’s nearly a century of operations in Nigerian onshore oil and gas and is part of a broader retreat by Western energy companies from Nigeria, including Exxon Mobil (XOM.N), Italy’s Eni (ENI.MI), and Norway’s Equinor (EQNR.OL).
A key figure in the consortium, while discussing with Business Standards said they are already discussing the details of the Ministerial Consent with Shell since it was the one the minister sent the Letter.
He said: “it is true and I can confirm to you that the Ministerial Consent has been given to Shell”
Shell’s sale to Renaissance, comprising five companies, was announced in January but was blocked in October by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The regulator had cited Renaissance’s inability to demonstrate its capacity to manage the assets, which hold an estimated 6.73 billion barrels of oil and condensate, and 56.27 trillion cubic feet of gas.
The NUPRC and Shell did not immediately respond to requests for comment.
Renaissance said: “This approval marks a significant step forward from the announcement of the sale and purchase agreements in January”.
This week, Shell announced its Nigerian subsidiary had made 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 acquisition includes SPDC’s interests in several onshore oil blocks, its joint venture with the Nigerian National Petroleum Company Limited (NNPCL), and associated midstream and downstream assets.
While the financial specifics of the deal remain undisclosed, industry experts estimate the acquisition’s value to run into billions of dollars, given the strategic importance of SPDC’s assets.
The move is expected to further Nigeria’s commitment to local content development.
Meanwhile, Renaissance Africa Energy has expressed its commitment to maintaining and improving the operational excellence associated with SPDC.
The consortium says it plans to invest in modernizing infrastructure, enhancing environmental standards, and fostering community engagement to ensure sustainable operations in the Niger Delta region.
The acquisition aligns with Shell’s global strategy of divesting from onshore assets in Nigeria to focus on deepwater operations and cleaner energy solutions.
The company has been actively selling its onshore stakes in Nigeria over the past few years as it repositions itself in the global energy market.
Experts say Renaissance Africa Energy’s successful acquisition of SPDC could pave the way for a more locally-driven oil and gas sector, positioning Nigeria to take greater control of its energy destiny.