ABUJA, Oct 21 (Reuters) - Nigeria has blocked the sale
of Shell's entire onshore and shallow-water oil and gas
assets in the Niger Delta, the country's upstream regulator said
on Monday, roughly 10 months after the deal was announced.
In a speech at an event in the capital Abuja, Nigerian
Upstream Petroleum Regulatory Commission (NUPRC) CEO Gbenga
Komolafe said the Shell deal "could not scale (the) regulatory
test," without elaborating.
A Shell spokesperson did not immediately respond to a
request for comment.
Shell said in January that it had reached an agreement
to sell its onshore oil and gas assets to the Renaissance
consortium of five companies for up to $2.4 billion, allowing it
to focus on deepwater and integrated gas investments.
The assets hold a combined estimated volume of 6.73
billion barrels of oil and condensate and 56.27 trillion cubic
feet of associated and non-associated gas.
In trying to exit the oil-rich Niger Delta, Shell
follows other oil majors Exxon Mobil ( XOM ), TotalEnergies
and Eni who wanted to do so because of
security concerns.
Environmental activists and some communities opposed the
Shell-Renaissance deal, tying Shell into a string of lawsuits
for environmental restoration and compensation for land and
rivers damaged by historical oil spills.
In April, the NUPRC started evaluating Shell's
divestment to the consortium, which comprises four Nigerian
exploration and production companies and an international energy
group.