Nigerian Government Endorses ExxonMobil-Seplat Divestment, Disapproves Shell-Renaissance Deal

The Nigerian government has approved the divestment of four major international oil companies (IOCs) as part of its ongoing reforms in the energy sector.

Gbenga Komolafe, the Chief Executive Officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced this during the launch of the commission’s ‘Project 1 Million Barrels of Oil Per Day (MMBPD)’ initiative. He revealed that the commission received applications for regulatory approval concerning five divestment transactions.

The approved transactions, according to the NUPRC CEO, are the divestment of Nigerian Agip Oil Company (NAOC) by Eni to Oando Plc and the divestment of Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited.

Additionally, other significant transactions include the TotalEnergies-Telema Energies agreement and ExxonMobil’s divestment of Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy. The NUPRC confirmed ministerial consent for the four deals as mentioned above has been granted.

He said, “Currently, we have processed four of the transactions and four of them have received ministerial consent.

“The four transactions are the transactions in respect of Equinor–Project Odinmim. That has been recommended by the regulator in line with the provisions of the Petroleum Industry Act and it has received ministerial consent.”

He also stated that the transaction involving Agip and Oando has been processed following established regulatory frameworks, received ministerial approval, and has been duly communicated.

However, the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited failed to meet regulatory approval.

Shell’s divestment of assets valued at up to $2.4 billion to the Renaissance consortium, which includes five companies, was initially disclosed in January. Meanwhile, Exxon’s transaction with Seplat Energy (SEPLAT.LG), which was revealed in February 2022 with a price tag of $1.28 billion, has been pending regulatory approval for over two years.

“A transaction in respect to ExxonMobil-Seplat has equally successfully been recommended by the regulator and I am happy to announce that has received ministerial consent. Also, a transaction in respect of 10 percent divestment by TotalEnergies (to Telema Energies) has equally been completed by the regulator and has received ministerial consent,” he added.

He stated that, overall, out of the five major divestment transactions referred to the commission for processing, the commission has ensured, for the first time in history, the establishment of a robust regulatory framework in accordance with the PIA.

Frances Ibiefo

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