Nigerian Upstream Petroleum Regulatory Commission Clears Divestment Deals
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified that the approvals given for the divestment deals of two oil companies, Nigerian Agip Oil Company Limited (NAOC) and Equinor Nigeria Energy Company (ENEC), were in line with the Petroleum Industry Act (PIA) 2021.
According to Olaide Shonola, NUPRC’s Head of Public Affairs, the divestment deals were approved through a regulatory process that ensured compliance with relevant laws and guidelines. Shonola made this known in a statement on Monday in Abuja.
The two companies, NAOC and ENEC, are being divested by Oando Plc and Chappal Energies, respectively. The divestment process was carried out in accordance with the NUPRC’s regulatory framework, which evaluated the deals based on technical capacity, financial viability, legal compliance, decommissioning and abandonment, host community trust, and environmental remediation.
Shonola emphasized that the Commission worked with reputable external consultants to identify significant pre-sale liabilities inherent in the assets to be divested. The Commission’s thorough evaluation and due diligence process ensured that potential assignees were capable and compliant with legal requirements.
The NUPRC also clarified that the divestment deal by Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited is currently undergoing the same consent approval process and would be completed within 120 days, as provided by the PIA.
The Commission’s clarification comes in response to concerns raised by former Vice President Atiku Abubakar, who had asked the Federal Government to explain why Oando Plc received an accelerated approval to acquire AGIP/ENI. Abubakar had also alleged that other transactions, such as the Shell/Renaissance deal and the Mobil/Seplat deal, were suffering delays.
The NUPRC has assured the public that its process for approving divestment applications is guided by PIA provisions and clearly defined frameworks in the assignment regulations, guided by international best practices.
The Commission’s commitment to transparency and regulatory compliance is expected to boost investor confidence in the Nigerian oil and gas sector.
