Business

Shell $1.3bn assets sale gets regulatory agency nod

Published

2 years ago

September 11, 2024

Shell $1.3bn assets sale gets regulatory agency nod

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.

Senior government sources told BusinessDay that the transaction that involves Shell’s 75-year-old onshore assets to Renaissance – a consortium of four exploration and production companies in Nigeria and an international energy group – has got the green light from the regulatory commission as required by the Petroleum Industry Act (PIA).

This deal, if successful, is expected to increase Nigeria’s oil production, boost government petrol dollar earnings, support the naira and accelerate the government’s plans for gas development.

The deal, however, still requires the final approval of President Bola Tinubu, who currently holds the portfolio of minister of petroleum resources.

“NUPRC has approved the sale and made the recommendation to the minister of petroleum for approval. This is on the minister’s table. All ‘next steps’ await the minister’s consent,” a senior government source said.

Another senior government source added, “As you know, the minister, who doubles as president, has been out of the country. As the minister has not yet given his approval, all next steps – statutory payments – await his consent.”

The British energy giant pioneered Nigeria’s oil and gas business beginning in the 1930s. It has struggled for years with hundreds of onshore oil spills as a result of theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits.

Shell in January announced that it had reached an agreement to sell its onshore assets in the Niger Delta region to Renaissance and focus on deepwater and integrated gas investments.

The buyer, the Renaissance consortium, comprises ND Western, Aradel Energy, First E&P, Waltersmith, all local oil exploration and production companies, and Petrolin, a Swiss-based trading and investment company.

Sources said Shell executives have promised to assist in speedily developing Bonga assets, support an increase in oil production and accelerate the government’s plans for gas development if the Shell/Renaissance deal sees the light of the day.

“They want to put $7 billion down to develop Bonga and in three years help local operators develop an additional 300,000 barrels per day (bpd) to 500,000 bpd. They also want to stake partnership to ensure that the gas part of the deal is quickly done to benefit Nigeria,” one of the senior government sources said.

Efforts to reach Olaide Shonola, head of public affairs at NUPRC, via calls or messages proved abortive as at the time of writing these reports.

Implications for Bonga

While the deal promises to inject new energy into Nigeria’s oil and gas sector, experts are closely examining its potential impact on Bonga’s production and development plans.

Bonga, Nigeria’s first deepwater oil field, can currently produce 225,000 bpd of crude oil and 150 million standard cubic feet (scf) per day of gas which feeds the Nigeria Liquefied Natural Gas (NLNG) plant at Bonny.

Developing Bonga Southwest had been expected to add around 1 billion barrels to Nigeria’s oil reserves. Shell had previously said it would develop the Bonga Southwest project across three phases with a total potential yield of 3.2 billion barrels.

Output from the field was one of the projects Nigeria was banking on to raise production to around 3 million bpd by 2023, the Nigerian National Petroleum Company (NNPC) officials said.

Nigeria, which produces high-quality light sweet crude oil, has seen its production slump to multi-decade lows, due to operational, technical and sabotage issues.

Nigeria can pump around 2.2 million bpd of crude and condensate but output languished near 1.3 million bpd in July 2024, according to NUPRC’s estimates.

Developing the Bonga Southwest will cost $10 billion, according to estimates by the NNPC, the concessionaire of the field.

The bulk of Bonga Southwest’s resources are located in OML 118, but it also extends to OMLs 132 and 140, operated by US major Chevron, where it is called Aparo. Other partners in the project are France’s TotalEnergies and Italy’s Eni.

Assets at stake for divestment

Shell said it has structured the deal to maintain Shell Petroleum Development Company of Nigeria Limited (SPDC) operational capabilities to support the SPDC Joint Venture (SPDC JV).

Data sourced from Shell Nigeria’s Briefing Notes 2023 showed the operating assets of SPDC JV include: 250 producing oil wells (189 West assets and 61 East assets); 37 producing gas wells (4 West assets and 33 East assets); four gas plants and two onshore oil export terminals.

Other partners in the SPDC JV include: the NNPC (55 percent), Total Exploration and Production Nigeria (10 percent) and Nigeria Agip Oil Company (5 percent).

As part of the transition, SPDC’s employees will remain with the company under the new ownership.

Shell’s 25.6 percent interest in Nigeria’s Liquefied Natural Gas (NLNG) plant is not included in this transaction.

Shell’s presence in Nigeria will still be significant post-sale, with three businesses that will also remain outside the scope of the deal.

These include: Shell Nigeria Exploration and Production Company, which operates in the deepwater Gulf of Guinea; Shell Nigeria Gas, which supplies gas to local industries and commercial customers; and Daystar Power Group, which is engaged in offering solar power solutions across West Africa.

Win for indigenous companies

The Renaissance consortium comprises some of Nigeria’s most respected upstream companies with demonstrated track records of redeveloping mature assets in the Niger Delta.

Individually, each of Renaissance’s shareholders has also demonstrated an ability to operate in Nigeria and maximise domestic value creation. Aradel Holdings has grown an integrated oil, gas and refining business around Ogbele that has continued to expand over the years.

Waltersmith follows a similar pattern as operator of the producing Ibigwe marginal field and the Ibigwe modular refinery. First E&P successfully commissioned the Anyala-Madu shallow water hub in 2020 and is working with Dangote on achieving first oil at the Kalaekule Field soon.

Nigeria is currently faced with a gas supply shortage that must be addressed to meet the objectives of the ‘Decade of Gas,’ which seeks to grow gas penetration and develop a gas-based economy that is more sustainable and spurs industrialisation.

As Nigeria seeks to grow gas production, processing, and distribution, Renaissance will become a pillar of the country’s gas monetisation strategy and a critical partner to the public and private sector players seeking to expand the country’s gas value-chain.

In that regard, the appointment of Tony Attah, former Shell executive and managing director/CEO of Nigeria LNG for more than five years, as Renaissance’s first MD/CEO is not insignificant.

Business

Official, Black Market Rates Diverge as Naira Starts Week on Stable Note

Published

9 hours ago

April 13, 2026

Trends Admin

Official, Black Market Rates Diverge as Naira Starts Week on Stable Note

The Nigerian Naira began the new trading week on Monday, April 13, 2026, with slight movements against the United States Dollar across both the official and parallel foreign exchange markets, reflecting continued cautious stability in the currency environment.

In the Nigerian Foreign Exchange Market (NFEM), the official trading window, the Naira opened at about ₦1,358.84 per $1, before recording mild intraday fluctuations that pushed it briefly to around ₦1,362.08, before easing back toward the opening range.

The performance indicates a relatively stable session, supported by ongoing liquidity management efforts and sustained interventions by the Central Bank of Nigeria, which has continued to monitor dollar supply and demand in the banking system.

Analysts say the official market remains largely driven by inflows from oil exports, non-oil earnings, and diaspora remittances, all of which help moderate volatility in the NFEM window.

Parallel Market Remains Higher Amid Strong Demand

In contrast, the parallel market—commonly referred to as the black market—recorded significantly higher exchange rates as demand for dollars persisted among importers, traders, and individuals outside the official FX window.

Market Outlook and Sentiment

Financial analysts note that market sentiment remains cautious, with traders closely watching upcoming macroeconomic indicators, crude oil price movements, and possible policy signals from monetary authorities.

Experts also point out that the stability in the NFEM suggests that recent reforms and tightening measures in the foreign exchange market may be gradually improving transparency and liquidity management, even though pressure persists in the informal market segment.

For many Nigerians, fluctuations in the exchange rate continue to directly impact the cost of imported goods, fuel-related logistics, and overall inflation expectations, making daily FX movements a key economic indicator.

As of early Monday trading, market activity remained steady, with expectations that the Naira will continue to trade within a relatively narrow range unless triggered by major external shocks or policy adjustments.

Official, Black Market Rates Diverge as Naira Starts Week on Stable Note

Railway

FG pushes high-speed train, expands rail links to seaports

Published

1 day ago

April 12, 2026

Trends Admin

FG pushes high-speed train, expands rail links to seaports

The Federal Government has intensified efforts to modernise Nigeria’s rail system, setting up a high-speed rail committee and approving the expansion of rail connections to key seaports to boost cargo movement and ease logistics bottlenecks.

Managing Director of the Nigerian Railway Corporation (NRC), Kayode Opeifa, disclosed this at the quarterly stakeholders’ engagement of the Nigerian Ports Consultative Council.

In a statement by the NRC’s Chief Public Relations Officer, Callistus Unyimadu, Opeifa said the Office of the Secretary to the Government of the Federation had constituted a committee on high-speed rail development to drive initiative.
He disclosed that the Federal Government was seeking private sector participation in this regard.
The NRC boss also emphasised that seamless rail-port integration remained critical to unlocking the full benefits of ongoing maritime reforms.

Opeifa warned that investments in port infrastructure, including deep seaports, would continue to yield limited returns without efficient rail connectivity to move cargo inland.
He noted that while collaboration between the corporation and port authorities had improved—particularly under the administration of Bola Ahmed Tinubu—significant gaps remain in cargo evacuation from ports, especially in Lagos and along the eastern corridor.

He identified persistent bottlenecks in rail freight operations and called for targeted interventions to improve efficiency, stressing that a shift towards rail-based cargo movement is essential for a more reliable and cost-effective logistics system.

Highlighting ongoing and planned projects, Opeifa said the Federal Government has approved the extension of the Lagos–Ibadan standard gauge rail line to Apapa and Tin Can Island ports. He added that the Warri–Itakpe line would be linked to Warri Port, while the eastern narrow gauge is set to connect the Port Harcourt Port at Onne.

He further disclosed plans to link the Lagos–Kano western line to Baro Port, as part of a broader strategy to integrate all major ports into the national rail network.

On project updates, the NRC boss said the Kaduna–Kano rail corridor is nearing completion, while efforts are underway to connect existing rail lines directly to ports to reduce congestion and improve cargo evacuation.

He also revealed plans for a new rail line to the Lekki Deep Sea Port, expected to pass through Ijebu-Ode and Sagamu to Kajola, where it will link with the Lagos–Ibadan line. The project, he said, is likely to commence this year.

Describing rail connectivity to ports as a key driver of economic growth, Opeifa urged stakeholders, including truck operators, to support the initiative, noting that road transport would continue to play a complementary role in last-mile delivery.

He also called for the expansion of freight yards across both narrow and standard gauge lines to enhance cargo handling capacity and overall efficiency.

The stakeholders’ meeting brought together key players in the maritime and rail sectors to align strategies and strengthen collaboration towards building a more integrated and efficient national transport system.

Business

NNPC Remits N1.804 Trillion to Federation Account in February

Published

2 days ago

April 11, 2026

Trends Admin

Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Mr. Bayo Ojulari

NNPC Remits N1.804 Trillion to Federation Account in February

The Nigerian National Petroleum Company Limited (NNPC) has remitted N1.804 trillion to the Federation Account in February 2026, marking a significant jump from the N726 billion recorded in January, according to its latest Monthly Financial and Operational Report Summary.

The sharp increase highlights improved oil and gas revenue performance in Nigeria, stronger production output, and ongoing fiscal reforms aimed at boosting transparency and accountability in the petroleum sector.

NNPC Ltd reported that its total revenue increased to N2.68 trillion in February, up from N2.57 trillion in January, driven by higher crude oil sales, improved gas earnings, and operational efficiency gains across its assets. The company also recorded a profit after tax of N136 billion, reflecting improved financial performance despite fluctuations in global crude oil markets and domestic operational challenges.

According to the report, Nigeria’s crude oil and condensate production averaged 1.51 million barrels per day (bpd) in February 2026. NNPC attributed the output stability to improved asset reliability, faster resolution of evacuation constraints, and enhanced coordination with upstream operators across key oil fields.