FG reacts to oil deal as Aradel shares dip after listing

• President Bola Tinubu's special adviser on energy advised that Shell’s propose deal they 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
• He said that 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.

Nigeria denied Shell's offer to sell its onshore oil and gas assets to a group of firms. Photo Credit: Contributors
Source: Getty Images

Verheijen said during a call with the energy reporters’ association on Wednesday,

“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.”

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

According to Bloomberg report, a Shell representative was unable to comment at this time. The business 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 make sure 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.”

Nigerian oil company becomes largest listing firrm

Legit.ng 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.

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Source: Legit.ng