Contrary to indications that Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the regulator of Nigeria’s upstream oil sector, is responsible for the alleged delay in granting consent to the sale of $1.3 billion ExxonMobil’s 40 percent stake in Mobil Producing Nigeria Unlimited, MPNU’s assets, to Seplat Energy Plc, stakeholders have absolved NUPRC of any causing the delay.

ExxonMobil had expressed its intention to sell its oil assets to Seplat Energy Plc, over two years ago, but the transaction remained uncompleted.

While the Commission’s Chief Executive, NUPRC, Gbenga Komolafe, could not be reached for comments, Komolafe, at the Africa Oil Week, AOW, in Cape Town, South Africa, last October, said: “We are very optimistic that parties to the transaction will go back, look at the position of the regulator and come back by abiding by the provisions of Nigerian laws and the right thing will be done.”

Energy expert, Ibrahim Musa, who is familiar with the issue, said: “It is a very simple matter. When the idea to sell the assets came up, NUPRC did not say no. It only insisted that the process stipulated in Section 14 of the 2019 Joint Operating Agreement (JOA) be followed.

“The JOA, which governs the joint venture operations between the co-venturers, clearly states that they reach an agreement among themselves as a condition for getting NUPRC’s consent.

“In line with the law, the commission had advised co-venturers to comply because the marriage-like kind of relationship they have cannot be dissolved without the agreement of the parties.”

It added: “So, the co-venturers have to get back to the regulator to speak with one voice that they have agreed to sell the assets. This is the first step. There are also other steps, including the meeting of community obligations and commitment to the environmental restoration of producing sites.

“As a regulator, NUPRC upholds the law as contained in the Petroleum Industry Act, (PIA), and guidelines on assignment of interests whatsoever, including share sales. This explains why it has already put in place a robust template to guide divestment in Nigeria’s oil and gas industry.”

SIMILARLY, the National President, Oil and Gas Service Providers Association of Nigeria, Colman Obasi, said: “Already, the Komolafe-led team at the NUPRC has done so much to enable businesses in the industry.”

For instance, NUPRC developed regulations, giving meaning and intent to the PIA, to ensure that all bottlenecks associated with regulatory processes are eliminated or minimised, to entrench seamless upstream petroleum operations.”

“As a business enabler, the NUPRC has intentionally attracted many local and foreign investors to Nigeria’s oil and gas industry, thus culminating in Nigeria’s oil reserves rising to 37.50 billion barrels in 2024, from 36.966 billion barrels recorded on January 1, 2023, while natural gas rose to 209 trillion cubic feet on January 1, 2024, from 208.83TCF recorded over the corresponding period last year.”