Shell PLC (LSE:SHEL, NYSE:SHEL) has reportedly seen proposals to sell its Nigerian business blocked by the country’s oil regulator.
Local newspaper ThisDay reported on Wednesday that the US$1.3 billion sale had not been approved since buyer Renaissance Group was not qualified to manage the projects.
Companies within the group had been unable to operate at least half of the assets already under their control, the Nigerian Upstream Petroleum Regulatory Commission found, according to the report.
Shell announced the sale of its Nigerian onshore and shallow water assets to the Renaissance consortium of five companies in January.
This came as part of a wider trend among oil majors to refocus on more profitable projects, such as deep offshore fields.
“Shell and the government are in ongoing communication as part of the approval process for the sale of Shell Petroleum Development Company,” a spokesperson said.
“Shell Petroleum Development Company will continue to provide the regulator with all information needed to complete the approval process.”