NUPRC Denies Giving Regulatory Nod To Shell For Sale Of Onshore Assets
By Sunday Etuka, Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has denied the report suggesting that it has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.
A publication in the Businessday of September 11, 2024, suggested that the regulator has given assent for the sale of the assets.
However, a statement on Wednesday by the Head of Public Affairs and Corporate Communication of NUPRC, Mrs. Olaide Shonola, clarified that the information contained in the publication did not emanate from the Commission.
She noted that as part of the Commission’s commitment to transparency and accountability, it would communicate its position on the transaction to the public at the appropriate time.
She, therefore, urged industry stakeholders and the general public to disregard the publication as it is baseless.
Shell, in January 2024, reached an agreement to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.
However, the completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.
The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership.
This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV)*. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.
Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.
