Good News for Investors as FG Shares Update on Shell Oil's Asset Sale

• President Bola Tinubu's special adviser on energy has advised that Shell’s propose deal should be fixed quickly
• This occurred after Nigeria rejected Shell's plan to sell its onshore oil and gas assets to Renaissance earlier this month
• The president's aide said the Nigerian government wants to ensure that they can invest enough when smaller companies buy oil fields

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Olu Verheijen, President Bola Tinubu's special adviser on energy, stated that although Shell's proposed sale of its onshore assets to a group of local companies had certain problems, they should be fixed quickly.

Verheijen said during a call with the energy reporters’ association on Wednesday, October 30, 2024.

“I am sure that in short order it will be resolved with the regulator in a way that addresses our own objectives to continue to accelerate exits for international oil companies.”

Read also

Ghana’s Springfield begins oil well appraisal after Nigeria’s Dangote refinery begins production

Nigeria denied Shell's offer to sell its onshore oil and gas assets to a group of firms called Renaissance earlier this month despite accepting Exxon Mobil Corp.'s sale to indigenous energy provider Seplat Energy Plc.

According to Bloomberg report, a Shell representative could not comment on the matter. The media outlet stated earlier this month that it was in continuous negotiations with the government on the deal and would furnish the regulator with all the data required to finalize the approval procedure.

According to Verheijen, the Nigerian government wants to ensure that smaller businesses that acquire oil fields from larger producers can make sufficient investments.

“For the independents who are coming in onshore, we want to make sure that they align with our objectives of rapidly growing production,” she said. “They need to ensure that there is a technical and financial capacity and that some of the obligations that need to be addressed are being addressed.”

Read also

Access Bank speaks on opening new office in Hong Kong, US, shares plan to meet new capital

Nigerian oil company becomes largest listing firm

Legit.ng earlier reported that on October 14, 2024, a Nigerian energy company, Aradel Holdings, made its debut on the Nigerian Exchange by listing 4.34 billion common shares at a value of N0.50 each.

The company said in a statement that its shares will be offered at N702.69 a share, which would be the largest listing by introduction in the NGX's history.

Chapel Hill Denham, an investment firm, said it is acting as Aradel Holdings Plc's official adviser.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng