Would you like to receive notifications on latest updates of the following headlines?

Shell's Exit Sparks $4.5 Billion Acquisition Race By Nigerian Firms

POSTED ON January 17, 2024 •   BUSINESS      BY Oluwakemi Ademuyiwa

Fresh turmoil looms as Nigerian companies eye a $4.5 billion buyout of Shell, ExxonMobil, and Nigerian Agip Oil Company Limited (NAOC) assets amid Shell's planned exit from Nigeria's onshore oil and gas industry.

Renaissance Africa Energy announced a $2.4 billion agreement with Shell to acquire the 100% holding in the Shell Petroleum Development Company of Nigeria Limited (SPDC), while Seplat aims to secure ExxonMobil's onshore assets for $1.3 billion. Oando secured an $800 million loan for NAOC's acquisition of four onshore blocks (OML 60, 61, 62, 63).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) deems this a blessing but insists on scrutinizing all companies, citing a lack of convincing details under the new divestment template. Amnesty International urges Nigeria to compel Shell to address years of environmental pollution in the Niger Delta before exiting.

The ongoing divestment by international oil companies reveals challenges within Nigeria's oil sector, including abandonment, decommissioning, oil theft, pipeline vandalism, legal cases, and environmental degradation.

As divestment accelerates, complexities arise, requiring thoughtful solutions. The strategic shift poses challenges and benefits, with concerns about abandonment, decommissioning, environmental issues, legal crises, labour conflicts, vandalism, and challenges for Nigerian companies.

Nigeria faces a crisis in declining oil production due to a lack of sector investment over the last decade. Coupled with climate issues, the country witnessed $21 billion worth of divested assets in recent years, leading to a 74% decline in yearly upstream capital expenditure from $27 billion in 2014 to less than $6 billion in 2022.

NUPRC's Chief Executive, Gbenga Komolafe, emphasizes safeguarding Nigeria's interests, stating that ExxonMobil's divestment approval is pending due to unmet criteria. Komolafe highlights the positive aspect of divestment, allowing domestic and international investors to demonstrate capability, with local investors understanding the environment better.

Energy expert Ademola Adigun urges the Federal Government to expedite the divestment process, avoiding delays that tarnish the country's image.

READ ALSO
Nigerian Financial Institutions Urged to Adopt Real-Time Tools to Combat Rising Fraud
BY Abiodun Saheed Omodara July 30, 2025 0

Financial institutions in Nigeria and throughout Africa have been encouraged to implement real-time...

READ ALSO
NDLEA Conducts Public Auction of Properties Linked to Drug Trafficking
BY Abiodun Saheed Omodara July 30, 2025 0

The National Drug Law Enforcement Agency (NDLEA) held a public auction yesterday for houses that wer...

READ ALSO
FG Plans Re-Privatization of Power Discos Amidst Legislative Changes
BY Abiodun Saheed Omodara July 29, 2025 0

The Federal Government may proceed with the sale of 11 power distribution companies through a re-pri...

READ ALSO
Lagos, Ogun Set for 25-Day Power Outage: Maintenance Work Begins July 28
BY Abiodun Saheed Omodara July 28, 2025 0

Lagos State and some areas of Ogun will undergo a power outage lasting 25 days, beginning on July 28...

READ ALSO
FG Mandates GPS Coordinates for Capital Projects Over N150 Million in 2025
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has required that all Ministries, Departments, and Agencies provide the Globa...

READ ALSO
FG Urges Project Accountants to Prioritize Integrity in Fund Management
BY Abiodun Saheed Omodara July 25, 2025 0

The Federal Government has cautioned project accountants and financial officers to prioritize care a...

READ ALSO
Electricity Tariffs: Power Firms Push Back Against State Negotiations
BY Abiodun Saheed Omodara July 24, 2025 0

On Wednesday, energy commissioners from all 36 states announced their willingness to engage with pow...

READ ALSO
CBN Maintain Interest Rate at 27.5%
BY Abiodun Saheed Omodara July 22, 2025 0

The Central Bank of Nigeria (CBN) has decided to keep the country's Monetary Policy Rate (MPR) at 27...

OUR CHANNELS:

Oyo State Government Seizes Goods from Unregistered Veterinary Practices
BY Abiodun Saheed Omodara July 30, 2025 0

The Oyo State Government on Tuesday shut down 15 veterinary outlets and seized goods valued in milli...


Nigerians Must Go: Ghanaians Rally Against Alleged Mass Prostitution and Ritual Killings
BY Abiodun Saheed Omodara July 30, 2025 0

Some Ghanaians have expressed their discontent with Nigerians, accusing them of engaging in mass pro...


SGF Urged Northern Politicians to Postpone Presidential Aspirations Until 2031
BY Abiodun Saheed Omodara July 30, 2025 0

The Secretary to the Government of the Federation, Sen. George Akume, has urged politicians from the...


Ola Aina Reflects on Frustrating Tottenham Experience that Changed His Career Path
BY Abiodun Saheed Omodara July 29, 2025 0

A defender for the Super Eagles, Ola Aina, has shared that he nearly signed with Tottenham Hotspur w...


CAF Announces Record $10.4 Million Prize Pool for 2024 African Nations Championship
BY Abiodun Saheed Omodara July 30, 2025 0

The Confederation of African Football has revealed an unprecedented total prize pool of $10.4 millio...


Victor Osimhen Set to Join Galatasaray: €75 Million Transfer from Napoli Finalized
BY Abiodun Saheed Omodara July 30, 2025 0

Victor Osimhen is expected to arrive in Istanbul this week as Galatasaray prepares to introduce the...


Fayose Endorses Tinubu, Oyebanji for 2027 Elections
BY Abiodun Saheed Omodara July 29, 2025 0

Former Ekiti State Governor, Ayodele Fayose, has officially endorsed President Bola Tinubu and Gover...


FG Plans Re-Privatization of Power Discos Amidst Legislative Changes
BY Abiodun Saheed Omodara July 30, 2025 0

The Federal Government may proceed with the sale of 11 power distribution companies through a re-pri...


Nigerian Nurses to Strike over Pay and Working Conditions
BY Abiodun Saheed Omodara July 29, 2025 0

Healthcare services across Nigeria are set to face significant disruption on Wednesday as nurses, re...


Nollywood Star Shaffy Bello Reveals Evolving Priorities in Love and Marriage
BY Abiodun Saheed Omodara July 29, 2025 0

A seasoned actress in Nollywood, Shaffy Bello, has disclosed her disinterest in dating younger men,...


More Articles

Load more...

Menu