The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has begun the assessment of Shell’s divestment of its 75-year-old onshore assets to Renaissance Africa Energy Company Limited, the newly appointed investors.
Shell announced in January its agreement to sell its onshore assets in the Niger Delta region to Renaissance, shifting its focus towards Deepwater and Integrated gas investments.
Renaissance Africa Energy Company Limited, a consortium of five companies including four Nigerian-based exploration and production firms and an international energy group, is the buyer.
NUPRC Chief Executive, Gbenga Komolafe, stated at the commencement of the evaluation that the assets hold an estimated combined volume of 6.73 billion barrels of oil and condensate, along with 56.27 trillion cubic feet of associated and non-associated gas.
“Our goal during this due diligence process is clear: to identify a successor who possesses both the necessary financial resources and technical expertise to responsibly manage these assets throughout their lifecycle,” Komolafe emphasized.
He also emphasized the regulator’s commitment to conducting the evaluation with precision, impartiality, transparency, and accountability.
In addition to financial and technical considerations, the regulator will examine other pertinent issues such as the seller’s labor relations and liabilities to workers, if any, as well as obligations to host communities.
Komolafe further elaborated that the Shell JV assets were originally granted as Oil Exploration Licence 1 (OEL-1) in January 1949, covering the entire southern Nigeria and Cameroon. These licenses were later converted to Oil Mining Leases (OMLs) in 1962, and subsequently renewed in 2014 and 2018.
