The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has commenced the evaluation of Shell’s divestment process for its onshore assets in the Niger Delta region. Shell had announced in January that it had reached an agreement to sell its 75-year-old onshore assets to Renaissance Africa Energy Company Limited, a consortium of five companies.
Gbenga Komolafe, the chief executive of NUPRC, stated that the assets being divested hold a combined estimated volume of 6.73 billion barrels of oil and condensate, and 56.27 trillion cubic feet of associated and non-associated gas. He emphasized that the regulator’s goal is to identify a successor who not only has the required financial resources but also demonstrates the technical expertise to responsibly manage these assets throughout their lifecycle.
Komolafe said that the evaluation process will be conducted with precision and impartiality, focusing on transparency and accountability. The regulator will also look at other issues, such as the seller’s labor relations and liabilities to workers, if any, and the obligations to host communities.
The Shell JV assets were originally awarded as Oil Exploration Licence 1 (OEL-1) on January 1949, covering the whole of southern Nigeria and Cameroon. They were later converted to Oil Mining Leases (OMLs) in 1962 and subsequently renewed in 2014 and 2018.
Shell’s decision to divest its onshore assets in the Niger Delta and focus on Deepwater and Integrated gas investments is part of the company’s broader strategy to reshape its portfolio and reduce its carbon footprint. The divestment process is being closely watched by industry stakeholders, as it could have significant implications for the future of oil and gas operations in the region.