In a major setback, Royal Dutch Shell's proposed $1.3 billion sale of its Nigerian onshore oilfields has been rejected by the country's oil regulator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The deal, announced in January 2024, would have seen Shell exit the Nigerian onshore oil market, focusing instead on more profitable deep offshore fields.

The NUPRC cited the lack of qualifications among the proposed new owners, a consortium of five companies known as the Renaissance Group, as the reason for the rejection. The regulator had previously debunked reports that it had given the green light for the deal, and has now confirmed that the bid was rejected in early August.

The failed deal is significant for the tech and startup community, as it highlights the challenges of navigating complex regulatory environments in emerging markets. The rejection also underscores the importance of ensuring that new owners have the necessary expertise and capacity to manage critical assets.