Oil and gas major Shell has resumed talks with ND Western to divest its assets in Nigeria, reported Bloomberg, citing sources.

Shell holds a 30% stake in the joint venture (JV) with Eni, TotalEnergies and the government-backed Nigerian National Petroleum Company.

The JV operates onshore and shallow-water oil and gas resources in the African nation.

In June 2022, Shell said that it was postponing the sale of its share in the JV as it awaited the resolution of a legal dispute before the Nigerian Supreme Court.

A lower court had instructed Shell to not sell any assets until the issue with a community in the crude-rich Niger Delta over alleged pollution is addressed.

Although significant progress has been made since the sale negotiations with ND Western resumed recently, Shell said, there is no guarantee that a deal will be reached or that the transaction will move through.

The Nigerian Supreme Court judges are now on summer vacation and the court's ruling for the Nigerian National Petroleum Company to maintain the status quo is still in effect.

Shell declined to comment on any sale talks.

However, the energy company reaffirmed its plan to scale back its engagement in onshore oil production in Nigeria, while maintaining its deepwater and natural gas holdings there.

Shell added that it respects the legal system and adheres to the court's direction.

ND Western also declined to comment on the development.

In 2021, Shell revealed its plan to sell the interest, claiming that operations in Nigeria, which are vulnerable to theft and oil spills, were incompatible with its long-term energy transition strategy.

Besides ND Western, local companies including Heirs Oil and Gas, Seplat Energy and Sahara Group had expressed interest in buying the assets.