Nigeria has rejected Shell’s proposed $1.3bn sale of its onshore oil production unit, dealing a blow to the oil major’s plans to exit the troubled shallow water sector in the Niger Delta region. Gbenga Komolafe,

In January, the Nigerian unit of London-based oil supermajor Shell Plc struck a deal with a consortium of five companies, setting the scene for the latter to acquire its onshore business in the country. The deal was sealed after years-long setbacks met by the company in its efforts to cede ownership of the assets.

Shell plc’sSHEL deal to sell its onshore Nigerian subsidiary, Shell Petroleum Development Company Ltd ("SPDC"), for $1.3 billion has suffered a setback, with the Nigerian Upstream Petroleum Regulatory Commission ("NUPRC") stating that the future buyer lacked the required qualifications to manage the assets.