The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its commitment to transparency and regulatory compliance in overseeing the divestment activities of International Oil Companies (IOCs) operating in Nigeria.
In a press statement released on Monday by the Head of the Public Affairs Unit, Olaide Shonola, the Commission provided detailed updates on several high-profile divestments, emphasising that all transactions were conducted in strict adherence to the Petroleum Industry Act (PIA) 2021 and other applicable legal frameworks.
The NUPRC highlighted the successful divestments of Nigerian Agip Oil Company (NAOC) to Oando Petroleum and Natural Gas Company Limited (Oando PNGCL) and Equinor Nigeria to Chappal Energies, noting that these approvals were granted only after thorough evaluations.
“The approvals given to the NAOC-Oando and Equinor-Chappal divestments were in accordance with the Petroleum Industry Act (PIA) 2021, defined regulatory framework, and standard consent approval process set by the Commission under the PIA,” Shonola said.
The statement went on to highlight the Commission’s meticulous approach to ensuring that all regulatory and legal requirements were met before any divestment could proceed. Specifically, the NUPRC detailed the multi-stage process involved in the NAOC-Oando transaction, which included technical evaluations, commercial negotiations, and the final ministerial consent.
“The process was conducted in compliance with the requirements of relevant legislations, regulations, and guidelines including the Petroleum Act, Petroleum Industry Act, Petroleum Drilling and Production Regulations, and the Upstream Asset Divestment and Exit Guidance Framework,” the statement read.
The NUPRC then elaborated on its thorough due diligence process, which involved evaluating potential assignees based on factors such as technical capacity, financial viability, legal compliance, and environmental responsibilities.
“The Commission’s thorough evaluation and due diligence process, anchored on the Seven Pillars of the Divestment Framework, ensured that potential assignees were capable and compliant with legal requirements and that all legacy liabilities were identified and appropriately managed,” the statement noted.
Shonola also addressed the ongoing divestment by Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited, a transaction that has attracted significant public attention. Initially, the Commission withheld its consent due to MPNU’s failure to obtain a waiver of pre-emption rights and the necessary consent from the Nigerian National Petroleum Corporation (NNPC).
However, following the resolution of these issues, the NUPRC has resumed its due diligence on the transaction, as the statement clarified, “MPNU’s application to the Commission for consent is currently undergoing due diligence review, under the same Divestment Framework applied to the NAOC-Oando and Equinor-Chappal divestment.”
The NUPRC further emphasised that the public’s right to know remains central to its operations, aiming to build trust by providing transparency in the high-stakes divestment processes and ensuring that stakeholders are fully informed about the Commission’s activities.
“NUPRC, as an organisation guided by law and professionalism, will continue to pursue its statutory mandate in a legal, independent, technical, commercial, and professional manner, operating under the authority of the PIA,” the statement concluded.
Ozioma Samuel-Ugwuezi
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