Shell’s Onshore Exit Approved: Local Firms Take Over $1.3 Billion Assets

The Federal Government has approved the purchase of Shell Plc’s onshore assets in Nigeria to a group of local companies for $1.3 billion.

Nigeria, Africa’s largest crude oil producer, had initially rejected the deal in October before Petroleum Resources Minister Heineken Lokpobiri announced on Wednesday that Renaissance Africa Energy owned by ND Western Ltd., Aradel Holdings Plc, Petrolin Group, FIRS Exploration and Petroleum Development Co. and Waltersmith Group has been approved to acquire the asset.

While the deal is in line with Shell’s long-term goal to exit operations in the Niger Delta region of the country, Amnesty International and civil society groups objected to the deal and warned authorities of human rights violations and the need to put measures in place to address conditions of the communities in the operating areas.

According to the acquiring companies, they have received the letter of approval and are currently evaluating it.

In October, Nigeria also approved Exxon Mobil Corp.’s sale of its onshore oil and gas assets to domestic energy supplier Seplat Energy Plc.