The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in defending its regulatory practices, said the divestment agreement between Oando and the Nigerian Agip Oil Company (NAOC) was properly conducted.
In a statement on Monday, NUPRC spokesperson, Mrs. Olaide Shonola, noted concerns raised by some Nigerians, noting that all divestment approvals relating to Oando and NAOC were in strict compliance with the Petroleum Industry Act (PIA), 2021 and related regulatory framework conditions.
Shonola stressed the commission’s commitment to transparency and compliance, explaining that the regulator carefully considers each disinvestment to ensure it is consistent with national interests and industry standards.
“The Equinor-Chappal divestment followed the same regulatory process as for the NAOC-Oando transaction.
Similarly, MPNU, by letter dated 24 February 2022, notified the Commission of its intention to transfer 100% of its issued shares to Seplat Offshore Energy Limited. The Commission did not approve the transfer as MPNU failed to waive pre-emptive rights or obtain the consent of NNPC, its partner in the block sale.
“It is worth pointing out that NNPC’s right to pre-emption and consent under the NNPCL/MPNU Joint Venture Joint Operating Agreement was the subject of Suit No: FCT/HC/BW/173/2022 Nigerian National Petroleum Company Limited versus Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., Mobil Exploration Nigeria Inc. and Nigerian Upstream Petroleum Regulatory Commission.
In June 2024, NNPC and MPNU resolved their dispute with NNPC and MPNU notified the Commission of the settlement of the dispute by letter dated 26 June 2024. After resolving this dispute, the Commission communicated its decision not to contest the divestment by letter dated 4 July 2024 and invited MPNU to provide the information and documents requested in the Commission’s due diligence checklist to enable the Commission to conduct its due diligence. According to the PIA. MPNU, by letter dated 18 July 2024, provided the information requested by the Commission. MPNU’s application for approval to the Commission is therefore currently undergoing due diligence under the same divestment framework that was applied to the NAOC-Oando and Equinor-Chappal divestments. The Commission’s due diligence process is ongoing and will take place within the 120-day period required by the PIA.
“Given the above, 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, guided by international best practices.
“As an organisation governed by law and order and characterised by professionalism, the NUPRC will continue to pursue its statutory mandate in a lawful, independent, technical, commercial and professional manner and act under the authority of the PIA,” the statement said.
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