Nigeria Approves Exxon Deal, Blocks Shell's Asset Sale

Nigeria has obstructed Shell's intended sale of its onshore and shallow-water oil operations, while approving a similar transaction by Exxon Mobil. The regulator indicates hurdles in Shell's divestment process, amid growing challenges for oil companies in the Niger Delta. Meanwhile, Exxon's deal with Seplat Energy proceeds with government support.

The Nigerian government has halted Shell's attempt to sell its entire onshore and shallow-water oil operations, although it granted approval to a similar agreement involving Exxon Mobil, according to the country's upstream oil regulator.

Shell's proposed asset sale, valued at up to $2.4 billion to Renaissance consortium, was revealed in January, but failed to meet regulatory standards without further explanation. Meanwhile, Exxon's deal with Seplat Energy which was pending for over two years since the announcement of a $1.28 billion fee in February 2022, has now received ministerial approval.

Despite the setback, Shell remains committed to expanding its deepwater investments amidst Nigeria's challenging operational environment. The Exxon-Seplat transaction stands to reshape the dynamic of oil operations within the country, marking a move towards offshore investments following longstanding issues with onshore theft and sabotage.

(With inputs from agencies.)