Breaking News: The Federal Government of Nigeria has rejected Shell proposed sale of $1.3 billion worth of its onshore assets to Renaissance Group. The Federal Government acting through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) cited the lack of competency of the buyer (Renaissance Group) to properly manage the assets as reason for the rejection of the deal.
Shell announced that it had furnished the Federal Government with every information they required regarding the deal.
The NUPRC surprisingly withheld approval for the deal, stating that Renaissance Group failed to provide sufficient evidence to prove it can competently manage the $1.3 billion worth of assets.
“Shell and the government are in ongoing communication as part of the approval process for the sale of Shell Petroleum Development Company (SPDC). SPDC will continue to provide the regulator with all information needed to complete the approval process,” The spokesperson of Shell Petroleum said
Further information
9am News Nigeria reported previously that Shell Petroleum Company has signed up on a deal to sell off all of its onshore assests to group of Nigerian companies known altogether as Renaissance Group, for the sum of $1.3 billion and that the deal is pending the approval of the Federal Government of Nigeria which has a right of refusal over all oil related deals as stated in the Petroleum Industry Act (PIA).
A few months ago the NUPRC indicated that it would only approve the deal once Shell accepts responsibility for oil spills in some part of the oil producing region of the Niger Delta, and makes commitment to fund the clean up of the oil spills.
Chief Executive of NUPRC Gbenga Komolafe ealier said that while in the short term the Commission awaits the commitment from Shell to take charge of the clean up of oil spills, the Commission would in the long term continue to scrutinize the merits of the divestment deal to ensure that the highest standards are maintained.
Meanwhile host communities (oil producing communities) in the Niger Delta have recently filed a N500 billion law suit against Shell Petroleum Company seeking the stopage of the sales its onshore oil assests for alleged violation of existing injunctions.
9am News Nigeria earlier reported that many International Oil Companies (IOCs) are staging an exit from Nigeria due to multiple factors including lack of profits and untamable oil theft happening in the Niger Delta.
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