Nigeria's oil regulator has declined to approve Shell's proposed $1.3bn (N21.25bn) sale of its onshore oilfields to the Renaissance group, reported Reuters, citing ThisDay, a local newspaper.  

The NUPRC cited the buyer’s lack of qualifications to manage the assets as the reason.

Shell Petroleum Development Company (SPDC) announced in January 2024 its intention to exit Nigeria's onshore and shallow water operations, selling the business to a consortium of five companies, primarily local, to focus on more profitable deep offshore fields.

However, the NUPRC has raised concerns that the Renaissance consortium, which includes ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, has not demonstrated the ability to manage over half of their existing assets.

The NUPRC's decision has been communicated to all involved parties.

Shell's withdrawal from Nigeria's onshore operations is part of a larger trend among major oil companies of shifting their focus to more profitable and newer ventures.

In recent years, ExxonMobil, Italy's Eni and TotalEnergies have all made deals to sell their assets in the country.

A Shell spokesperson told the news agency: “Shell and the government are in ongoing communication as part of the approval process for the sale of SPDC. SPDC will continue to provide the regulator with all information needed to complete the approval process.”

Last month, Nigerians filed a lawsuit seeking $310m from Shell and an injunction against the asset sale, alleging a violation of an existing court order.

In August, Nigerian energy company Oando acquired full ownership of the Nigerian Agip Oil Company from Eni.

This acquisition bolstered Oando's presence in Nigeria's oil and gas industry and supports its long-term growth strategy.