Nigeria approves Shell’s $2.4 billion asset sales to Renaissance

Shell received approval from Nigeria’s oil minister to sell $2.4 billion worth of onshore and shallow water assets to Renaissance Group. Renaissance Group said this in a Wednesday statement.

Shell has been operating in Nigerian oil and gas for nearly a hundred years. The Shell approval is part of an overall retreat of western energy companies, such as Exxon Mobil and Eni of Italy, and Equinor of Norway.

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, blocked Shell's sale of Renaissance, which comprises five companies, in October.

The regulator cited Renaissance’s inability demonstrate its ability to manage assets that hold approximately 6.73 billion barrels and condensate of oil, and 56.27 trillion cubic feet of gas.

Shell and the NUPRC did not respond immediately to comments.

Renaissance stated that "this approval represents a significant advance from the announcements of the sales and purchase agreements made in January".

Shell's Nigerian subsidiary announced this week that it had taken a final decision to invest in Bonga, a deepwater project located off the coast of Nigeria.

Shell has a stake of 55% in the Floating Production Storage and Offloading Facility, where this project will be located.

(source: Reuters)