Contrary to a report that the plan by Shell to sell its onshore oil assets to Renaissance Consortium was in the 'waiting room', THISDAY has learnt that the proposed $1.3 billion deal has been roundly rejected by the federal government.
Contrary to a report that the plan by Shell to sell its onshore oil assets to Renaissance Consortium was in the 'waiting room', THISDAY has learnt that the proposed $1.3 billion deal has been roundly rejected by the federal government.
Earlier, a report had said that the Shell's asset sale in the Niger Delta was at a standstill and was still being considered by the authorities. "So, contrary to any reports that they have whatever in the waiting room, this decision has been communicated in early August this year. The bid has been rejected, and it was rejected because the consortium did not show that they have enough capacity to manage 18 oil wells.
The reserves of the subject of the transaction were approximately 458 MMboe, while the consideration payable to Shell as part of the transaction was to be circa $1.3 billion. "Nigeria could be the loser. Two, another issue is that the seller financing model is not transparent. The seller is also the financiers. It didn't make sense and it was quite not transparent because it led to a lot of issues in the past," the reliable industry source stated.
The decision by the NUPRC to withhold its approval, it was further gathered, has been officially communicated to the consortium. "And then they have to resolve environmental issues because there have been protests from over 150 NGOs and those oil communities and also failed legal due diligence. So they have to go and cure all those issues," the person explained to THISDAY.There was a problem processing your submission. Please try again later.
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