FG finally approves Shell-Renaissance $2.4 billion onshore assets sale deal

• The Federal Government has finally approved the Shell-Renaissance $2.4 billion onshore assets deal
• The approval was reportedly given by the Minister of State for Petroleum Resources, Heineken Lokpobiri
• The Shell-Renaissance deal was faced with regulatory delays

The Federal Government has reportedly approved the sale of $2.4 billion onshore assets of Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy Company Limited.

Per Reuters, the approval was reportedly given by the “Minister of Petroleum Resources” and announced by Renaissance, a local oil and gas consortium, in a statement on Wednesday, December 18.

“Renaissance Africa Energy Company Limited is pleased to announce that the Minister of Petroleum Resources has granted his consent to the sale of The Shell Petroleum Development Company (SPDC) to Renaissance

“This approval marks a significant step forward from the announcement of the sale and purchase agreements in January,” the statement quoted Renaissance as saying.

The Africa Report noted that Shell’s recent $5 billion investment in the Bonga North project played a big role in persuading the government to approve the sale of the onshore asset, which was initially agreed at $1.3 billion.

Shell-Renaissance deal faced regulatory delays

The deal between Shell and Renaissance was met with regulatory delays despite both parties reaching an agreement in January 2024.

It was among the five divestment applications submitted to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), four of which the NUPRC said passed the regulatory test and secured ministerial consent. 

On the Shell-Renaissance deal, the commission said it is committed to following regulatory standards established under the Petroleum Industry Act (PIA) in all the divestment deals brought to it.

NUPRC’s CEO, Gbenga Komolafe, said the commission rejected the deal because it “could not scale regulatory test.”

Shell had announced its agreement to sell its 30 per cent stake in SPDC to Renaissance for over $2.4 billion to streamline its portfolio and direct disciplined investments toward deepwater and integrated gas ventures in Nigeria.

The assets include an estimated 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas.

Tinubu-led Oando takes over Eni’s Nigerian Agip Oil Company in $783m deal 

Meanwhile, TheRadar reported that Oando Plc took over Nigerian Agip Oil Company (NAOC) from Eni following the acquisition of a 100 per cent shareholding interest in the company for a total consideration of $783 million, which comprises consideration for the asset and reimbursement.

This was contained in a statement sent to the Nigerian Exchange (NGX) Limited on Thursday, August 22 by Oando’s Chief Compliance Officer and Company Secretary, Ms Ayotola Jagun.