Nigeria’s oil regulator reportedly started the evaluation of Shell plc (NYSE:SHEL) divestment of its 75-year-old Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies.

Gbenga Komolafe, the chief executive of the Nigerian Upstream Petroleum Regulatory Commission at the start of the exercise, commented that, “Our goal is clear at this due diligence meeting: to identify successor who not only possesses the requisite financial resources but also demonstrates the technical expertise to responsibly manage these assets throughout their lifecycle,” reported Reuters.

The regulator will also examine other issues like the seller’s labor relations, worker liabilities, and host communities’ obligations.

Komolafe said that the assets hold a combined estimated volume of 6.73 billion barrels of oil and condensate and 56.27 trillion cubic feet of associated and non-associated gas, per the report.

In January, the Oil giant reached a deal to sell its onshore assets in the Niger Delta region for $1.3 billion. 

Related: Shell May Need To Clean Up Old Infrastructure Before Leaving Nigeria: Report

This month, Shell reportedly inked a deal with the Nigerian government to supply gas to the proposed $3.8 billion Brass methanol facility.

Investors can gain exposure to the stock via Direxion Hydrogen ETF (NYSE:HJEN) and VanEck Natural Resources ETF (NYSE:HAP).

Price Action: SHEL shares are down 0.37% at $72.85 premarket at the last check Tuesday.

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