Nigeria Sees Objections to Shell Oil Asset Sale Resolved Soon
Nigeria’s upstream oil regulator found some issues with Shell’s proposed sale of its onshore assets to a consortium of local companies but they should be resolved soon, said Olu Verheijen, President Bola Tinubu’s special adviser on energy.
“I am sure that in short order it will be resolved with the regulator in a way that addresses our own objectives to continue to accelerate exits for international oil companies,” Verheijen said during a call with the energy reporters’ association on Wednesday.
Earlier this month, Nigeria approved Exxon Mobil Corp.’s sale of its onshore oil and gas assets to domestic energy supplier Seplat Energy Plc, but rejected a similar deal between Shell and a consortium of companies known as Renaissance.
A Shell spokesperson wasn’t immediately able to comment. The company said earlier this month that it was engaged in ongoing talks with the government over the transaction, and will provide the regulator with all information needed to complete the approval process.
Nigeria’s government wants to ensure that smaller companies that take over fields from major oil producers are able to invest adequately, Verheijen said.
“For the independents who are coming in onshore, we want to make sure that they align with our objectives of rapidly growing production,” she said. “They need to ensure that there is a technical and financial capacity and that some of the obligations that need to be addressed are being addressed.”
