Nigeria Blocks Sale of Shell's Oil Assets in Niger Delta

Nigeria's upstream regulator has halted the sale of Shell's onshore and shallow-water oil and gas assets in the Niger Delta. The $2.4 billion deal with the Renaissance consortium was blocked due to failing regulatory assessments, amidst ongoing environmental lawsuits and community opposition.

Nigeria has halted the sale of Shell's onshore and shallow-water oil and gas assets in the Niger Delta, according to the country's upstream regulator.

The chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, disclosed the decision on Monday in Abuja, stating the deal "could not scale the regulatory test." Shell, which did not provide an immediate comment, previously announced a $2.4 billion agreement in January to sell these assets to the Renaissance consortium.

The consortium includes four Nigerian companies and an international energy group. Shell's decision to exit the Niger Delta aligns with other major oil companies like Exxon Mobil and TotalEnergies, primarily due to security concerns and ongoing environmental litigation related to historical oil spills.

(With inputs from agencies.)