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The Federal Authorities, by the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), has rejected the proposed $1.3 billion sale of onshore oilfields to the Renaissance Group, citing the client’s lack of qualification to handle the property.
In keeping with a Reuters report, Shell, which owns the property by way of Shell Petroleum Growth Firm (SPDC), mentioned it was offering NUPRC with all of the required data.
Nevertheless, NUPRC declined to approve the sale on the grounds the Renaissance consortium couldn’t present it might handle the property, the report notes.
In keeping with the report, the NUPRC has communicated its determination to all of the events.
“Shell and the federal government are in ongoing communication as a part of the approval course of for the sale of SPDC. SPDC will proceed to supply the regulator with all data wanted to finish the approval course of,” a Shell spokesperson advised Reuters.
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Recall that in January, Shell Plc reached an settlement to promote its Nigerian onshore oil property to an area consortium for over $1.3 billion, pending authorities approval.
Shell’s Built-in Gasoline and Upstream Director, Zoe Yujnovich, confirmed the event, emphasizing the significance of the transaction as a part of the corporate’s technique to streamline its portfolio and prioritize investments in deepwater and built-in fuel tasks in Nigeria.
Nevertheless, the upstream oil regulator, NUPRC, has indicated that it’s going to solely fast-track the approval if Shell accepts duty for oil spills and commits to financing cleanup efforts within the Niger Delta.
NUPRC’s Chief Govt, Gbenga Komolafe, defined that this might enable for a quicker approval course of as a short-term choice if the businesses conform to the phrases. Nevertheless, a longer-term choice would contain ready till the NUPRC identifies and assigns all liabilities, Komolafe famous.
In the meantime, residents from host communities have filed a N500 billion declare towards Shell Petroleum Growth Firm, alleging that the corporate violated an current “Mareva” injunction and in search of to dam the sale of its onshore property.
