Nigeria’s Oil Regulator Holds Up Shell Onshore Asset Sale, But Resolution Expected Soon

Nigeria’s upstream oil regulator has flagged concerns with Shell’s proposed sale of its onshore assets to a consortium of local companies, but a resolution is anticipated soon, according to Olu Verheijen, President Bola Tinubu’s special adviser on energy, Bloomberg reports.

Verheijen, speaking during a call with the energy reporters’ association on Wednesday, assured that the issues should be resolved “in short order,” allowing Shell to continue its exit from the Nigerian oil market.

The news comes on the heels of Nigeria approving Exxon Mobil Corp.’s sale of its onshore oil and gas assets to Seplat Energy Plc, a domestic energy supplier. However, the government rejected a similar deal between Shell and the Renaissance consortium.

A Shell spokesperson was not immediately available for comment. Earlier this month, the company confirmed ongoing discussions with the government and its commitment to providing the regulator with all necessary information for approval.

Verheijen clarified that the government’s priority is to ensure that smaller companies acquiring assets from major oil producers are equipped to invest appropriately.

“We want to ensure that independents coming into the onshore sector align with our objectives of rapidly growing production,” she explained. “This includes verifying their technical and financial capacity and ensuring they address the necessary obligations.”