The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a detailed response to recent criticisms from former Vice President Atiku Abubakar regarding the approval process for oil and gas divestments.
The response addresses concerns raised about the swift approval of Oando Plc’s acquisition of AGIP and ENI’s onshore assets and the delays associated with other significant transactions.
In a press statement released on August 26, 2024, the NUPRC clarified that all divestments, including those involving Oando Petroleum and Natural Gas Company Limited (OandoPNGCL), OANDO Oil II Cooperatief U.A. (OANDO Cooperatief), and Equinor Nigeria’s assets to Chappal Energies, were conducted in accordance with the Petroleum Industry Act (PIA) 2021.
The Commission emphasized that these approvals followed the established regulatory framework and consent approval process mandated by the PIA.
The NUPRC detailed the process for the NAOC-Oando divestment, which began with NAOC’s notification on May 16, 2023, and progressed through technical evaluations and formal applications.
The Commission granted approval for NAOC to proceed with the commercial stage of the transaction on August 9, 2023. Further approvals and due diligence were conducted in compliance with the PIA and other relevant regulations, culminating in the final approval by December 2023.
The statement also addressed the Equinor-Chappal Energies divestment, which followed the same regulatory process as the NAOC-Oando transaction. The NUPRC’s thorough evaluation ensured compliance with legal requirements and management of legacy liabilities.
In response to concerns about the divestment by Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited (Seplat), the NUPRC acknowledged the complexities of the process.
“Initially, the Commission did not consent to the assignment due to issues with pre-emption rights and lack of NNPC consent. However, after resolving a dispute between NNPC and MPNU in June 2024, the Commission resumed the review process, which is currently ongoing within the 120-day timeline set by the PIA,” the statement noted.
The NUPRC reaffirmed its commitment to transparency and adherence to international best practices in its regulatory functions.
“The Commission wishes to assure the public that the process for approving divestment applications is guided by the provisions of the PIA and clearly defined frameworks in the assignment regulations,” the statement read.
The NUPRC also responded to Atiku’s criticism of alleged preferential treatment towards certain investors. The Commission emphasized that all approvals are conducted with strict adherence to regulatory standards and are not influenced by external factors.
The response highlighted that NUPRC operates independently, guided by the PIA, and remains committed to its statutory mandate.
“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,” stated Olaide Shonola, Head of the Public Affairs Unit.
This press statement addresses the concerns raised by Atiku Abubakar, who had questioned the expedited approval of the Oando deal and criticized the current administration’s handling of the oil and gas sector. Atiku had previously accused the government of favoritism and criticized the handling of the subsidy regime and the NNPCL’s management of national oil assets.