Abuja, Nigeria – The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a detailed statement regarding the ongoing divestment activities involving major International Oil Companies (IOCs), including Oando, Eni-AGIP, Seplat, and Mobil Producing Nigeria Unlimited (MPNU). The update, delivered on August 26, 2024, by the Head of Public Affairs Unit, Mrs. Olaide Shonola, is part of NUPRC’s commitment to transparency and public awareness of its regulatory activities.
The NUPRC confirmed that ministerial approvals have been granted for the divestments by the Nigerian Agip Oil Company (NAOC) to Oando Petroleum and Natural Gas Company Limited (OandoPNGCL) and Oando Oil II Cooperatief U.A. (Oando Cooperatief), as well as by Equinor Nigeria to Chappal Energies. These approvals were processed under the framework established by the Petroleum Industry Act (PIA) 2021 and followed the defined regulatory procedures.
In the case of MPNU’s divestment to Seplat Energy Offshore Limited (Seplat), the NUPRC noted that the transaction is still undergoing the consent approval process and is expected to be completed within the 120-day timeline stipulated by the PIA.
To provide clarity, the NUPRC outlined the sequence of events leading to the approvals, particularly focusing on the NAOC-Oando transaction. NAOC initiated the divestment process in May 2023, with the NUPRC overseeing the evaluation and approval stages. The approval process included a thorough review of technical capacity, financial viability, legal compliance, decommissioning and abandonment responsibilities, host community relations, and environmental considerations. The transaction was conducted in strict adherence to relevant legislations, including the Petroleum Act, Petroleum Industry Act, and Petroleum Drilling and Production Regulations.
The NUPRC also highlighted its collaboration with external consultants to identify and address significant pre-sale liabilities associated with the divested assets, ensuring that these liabilities are adequately provided for.
The Commission reiterated that all divestments, including those involving Oando, Chappal Energies, and Seplat, have been and will continue to be processed in accordance with the highest standards of regulatory compliance.
The statement concluded by reaffirming the NUPRC’s dedication to maintaining transparency in its operations and keeping the public informed about developments in Nigeria’s upstream petroleum sector.
