Nigeria approves Shell’s $1.3 billion asset sale to Renaissance

(Bloomberg) – Nigeria approved a $1.3 billion deal that would see a group of local companies buy Shell Plc’s onshore assets in Africa’s biggest crude producer.

Petroleum Resources Minister Heineken Lokpobiri is allowing Renaissance Africa Energy’s purchase of Shell Petroleum Development Co., a deal first announced in January, after the nation initially rejected the plan in October, the group said in a statement Wednesday. ND Western Ltd., Aradel Holdings Plc, Petrolin Group, FIRS Exploration and Petroleum Development Co. and Waltersmith Group own Renaissance.

Civil-society groups led by Amnesty International objected to the deal because of concerns about human-rights violations and asked the authorities not to proceed with it until safeguards were put in place.

The deal would fulfill Shell’s long-term goal of exiting operations in the challenging Niger Delta area. The company has received notification of the approval and is assessing it, the firm said in an emailed statement.

In October, Nigeria approved Exxon Mobil Corp.’s sale of its onshore oil and gas assets to domestic energy supplier Seplat Energy Plc.