NUPRC Blocks Shell’s $1.3 Billion Onshore Asset Sale to Renaissance Consortium
The deal, which required NUPRC’s approval under the Petroleum Industry Act (PIA), would have involved Shell divesting its stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to the Renaissance Consortium. This group includes ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and Waltersmith Group.
NUPRC CEO Gbenga Komolafe explained that in April, the commission had established a divestment framework to evaluate applications for ministerial approval of such sales.
The framework considers various factors, including technical expertise, financial stability, legal compliance, environmental remediation, and host community engagement. Komolafe emphasized that Renaissance needed to prove its technical capability to manage the assets effectively.
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The value of the deal has dropped significantly from $2.4 billion in January 2024 to $1.3 billion by August, partly due to an ongoing legal dispute between Shell and Global Gas and Refining Limited. The local firm has sought a court injunction to prevent NUPRC from approving the sale, citing contractual disagreements with Shell.
In response, Shell clarified that it was not directly selling the onshore assets to Renaissance for $1.3 billion but was instead transferring shares.
The proposed sale has also faced opposition from a coalition of 40 non-governmental organizations, including Amnesty International, which called for the transaction to be halted until Shell’s environmental impact is fully assessed. Additionally, the Petroleum and Natural Gas Senior Staff Association of Nigeria has rejected the sale, raising concerns about the consortium’s credentials and citing several allegations against it.
