The sale, which involves five companies, was initially announced in January. Credit: siam.pukkato/Shutterstock.

Shell has gained approval from Nigeria’s oil minister to sell $2.4bn (£1.91bn) worth of onshore and shallow-water assets to Renaissance group.

This approval signals the end of Shell’s presence in Nigerian onshore oil and gas operations and aligns with the broader trend of Western energy companies such as Exxon Mobil, Eni and Equinor scaling back their operations in Nigeria.

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The sale, which involves five companies, was initially announced in January but faced a setback in October when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) halted the process.

The NUPRC raised concerns over Renaissance’s capacity to manage the substantial assets, which are estimated to contain 6.73 billion barrels of oil and condensate and 56.27 trillion cubic feet of gas.

Renaissance said: “This approval marks a significant step forward from the announcement of the sale and purchase agreements in January.”

The approval follows Shell’s recent announcement of its Nigerian subsidiary making the final investment decision on the Bonga North deep-water project.

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This initiative, aimed at sustaining production levels at the Bonga field, will be integrated with Shell’s floating production storage and offloading facility, where the company maintains a 55% ownership.

In a related development, Nigeria announced plans to auction undeveloped oil and gas blocks next year, with a focus on natural gas development to align with the country’s commitment to UN sustainable development goals, according to the NUPRC.

This will be the third auction since the country enacted a comprehensive oil overhaul law in 2021, aiming to boost oil production and fund government spending.

NUPRC head Gbenga Komolafe said: “The licensing round is more than a commercial exercise; it is a bold declaration that Nigeria is ready for business.”

The previous round of bidding for new offshore oil blocks, announced in February, has been completed, with successful bidders expected to receive their licences in the upcoming months, Komolafe added.