NUPRC says Oando divestment followed due process, transparency and compliance
…the Commission’s commitment to transparency and compliance
In defense of its regulatory practices, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that divestment deal between Oando and Nigerian Agip Oil Company (NAOC) followed due process.
Nuprc spokesperson, Mrs. Olaide Shonola, in a statement on Monday, addressed the concerns raised by some Nigerians, noting that that all divestment approvals associated with Oando and NAOC were executed in strict adherence to the Petroleum Industry Act (PIA) 2021 and relevant regulatory frameworks.
Shonola, who emphasised the Commission’s commitment to transparency and compliance, explained that the regulatory body carefully evaluates each divestment to ensure alignment with national interests and industry standards.
“The Equinor-Chappal divestment followed the same regulatory process as for the NAOC-Oando transaction.
On a comparative basis, MPNU through a letter dated February 24, 2022, notified the Commission of its intention to assign 100% of its issued shares to Seplat Offshore Energy Limited. The Commission did not consent to this assignment because MPNU failed to obtain a waiver of pre-emption rights as well as the consent of NNPC, its partner on the blocks to the divestment.
“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, by letter dated 26 June 2024 informed the Commission of the resolution of the dispute. Upon resolution of this dispute, the Commission communicated its no-objection decision to the assignment via a letter dated July 4, 2024 and requested MPNU to provide information and documentation required under the Commission’s due diligence checklist to enable the Commission conduct its due diligence as required under the PIA. MPNU by letter dated 18 July 2024 provided the information requested by the Commission. Accordingly, 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 Commission’s due diligenceprocess is ongoing and within the 120-day timeline 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.
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 read in parts.
