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By Adewale Sanyaolu and Adanna Nnamani, Abuja
The Nigerian Upstream Petroleum Regulatory Authority (NUPRC) has denied a publication in a national daily(not Daily Sun) that it has approved the $1.3 billon Shell International onshore asset sale in Nigeria to Renaissance Consortium, affirming that it was baseless.
A statement by the Head of Public Affairs and Corporate Communication, NUPRC, Mrs. Olaide Shonola, disclosed that the information contained in the publication with the title “Re-Boon for Nigeria as Shell”s $1.3bnassets sale gets regulatory approval’’, didn’t emanate from the Commission.
‘‘The attention of the Nigerian Petroleum Regulatory Commission (NUPRC) has been drawn to a publication in the Businessday of September 11, 2024,purporting that the Commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.
It must be firmly stated that the information contained in the publication did not emanate from the Commission.
As part of the Commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time.
Industry stakeholders and the general public are advised to disregard the publication as it is baseless’’.
On January 16, 2024, Shell announced that it has reached an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.
The five Nigerian companies with footprints in oil exploration and production are; ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin,
The transaction, according to Shell has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership. This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV)*. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.
Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.
“This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
“It is a significant moment for SPDC, whose people have built it into a high-quality business over many years. Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.
“Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy.”
The SPDC JV is an unincorporated joint venture comprised of SPDC Ltd (30 per cent), the government owned Nigerian National Petroleum Company Ltd. (55 per cent), Total Exploration and Production Nigeria Ltd (10 per cent) and Nigeria Agip Oil Company Ltd (5 per cent).
According to Shell, the completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.
