The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has blocked Shell’s proposed sale of its onshore and shallow-water oil operations while granting approval for Exxon Mobil’s deal with Seplat Energy. The news was announced by the Commission’s CEO Gbenga Komolafe recently in Abuja.
Shell’s asset sale, valued at up to $2.4 billion and involving the Renaissance consortium of five companies, was initially announced in January. However, Komolafe stated that the Shell transaction “could not scale (the) regulatory test,” without providing further details on the reasons for the rejection.
In contrast, Exxon Mobil’s agreement with Seplat Energy, which has been pending regulatory approval for over two years since the $1.28 billion fee was announced in February 2022, received the necessary ministerial consent.
President Bola Tinubu had previously indicated on October 1 that the Exxon-Seplat deal would be approved shortly after receiving clearance from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In a statement, Exxon expressed its satisfaction with the NUPRC’s announcement and noted its anticipation of receiving the formal ministerial consent to finalize the sale. “We welcome the regulator’s announcement and look forward to formally receiving the ministerial consent as we work toward the conclusion of the sale,” the company stated.
The contrasting outcomes of these two significant transactions underscore the regulatory scrutiny currently prevalent in Nigeria’s oil sector, as the government continues to navigate its policies regarding foreign investment and operational management in the industry.
