The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reportedly rejected Shell International Plc’s bid to sell its onshore assets to Renaissance for $1.3 billion. The deal, which required regulatory approval under the Petroleum Industry Act (PIA), has been met with opposition from various stakeholders. However, sources suggest that President Bola Tinubu’s involvement may still see the deal go through, with a 70-30 chance of approval as of Monday morning.

Shell had announced its intention to divest its entire stake in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium of several companies. The NUPRC established a divestment framework to evaluate the application, considering factors such as technical expertise, financial standing, and environmental remediation.

Despite the regulatory hurdles, the deal has been marred by controversy. The value of the assets has dropped from $2.4 billion to $1.3 billion between January and August 2024. A legal dispute between Shell and Global Gas and Refining Limited has also raised concerns, with the latter seeking a court injunction to prevent the sale.

Additionally, a coalition of 40 NGOs, including Amnesty International, has expressed concerns over the transaction, citing Shell’s environmental damage. The Petroleum and Natural Gas Senior Staff Association of Nigeria has also rejected the sale, questioning Renaissance’s credentials and raising allegations against the consortium.

The NUPRC’s rejection of the deal may be a temporary setback, given the President’s reported interest in seeing the sale go through. However, the regulatory commission’s commitment to ensuring a thorough evaluation process and addressing stakeholders’ concerns is crucial in determining the deal’s future. The outcome remains uncertain, with various parties pushing for different outcomes.