Nigeria’s oil regulator has blocked Shell’s proposed sale of its onshore oilfields to Renaissance group, citing concerns about the buyer’s qualifications.
The $1.3 billion deal would have seen Shell exit its onshore operations in the country.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) declined to approve the sale, stating that Renaissance consortium could not demonstrate its ability to manage the assets.
The companies within the group have reportedly been unable to operate at least half of their existing assets.
Shell, which owns the assets through Shell Petroleum Development Company (SPDC), has expressed its commitment to providing the regulator with all necessary information to complete the approval process.
The company has been in ongoing communication with the government regarding the sale.
The decision marks a setback for Shell’s plans to focus on more lucrative deep offshore fields. It also aligns with a broader trend of oil majors retreating from onshore operations in Nigeria.
Exxon Mobil, Eni, and TotalEnergies have also sold assets in the country in recent years.