NUPRC counters Atiku over speedy divestment of Oando

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said that the divestment of Agip assets to Oando followed due process and was not expedited as it was being insinuated.

Former Vice President, Abubakar Atiku, had earlier said that the $783 million acquisition was accelerated given Tinubu’s influence on Oando.

NUPRC, in a statement, said that the approvals given to the NAOC-Oando and Equinor–Chappal divestments were following the Petroleum Industry Act (PIA) 2021, defined regulatory framework, and standard consent approval process set by the Commission under the PIA.”

The statement signed by the Head, Public Affairs Unit of NUPRC, Olaide Shonola, said that ministerial approval was recently granted to the divestment by NAOC to Oando Petroleum and Natural Gas Company Limited (Oando PNGCL) and OANDO Oil II Cooperatief U.A. (OANDO Cooperatief) (together the “Oando Entities”) and by Equinor Nigeria to Chappal Energies.

It noted that the divestment by ExxonMobil to Seplat Energy Offshore Limited (Seplat) is also currently undergoing the same consent approval process, and is expected to be completed within the 120-day timeline provided by the PIA.

For the Agip divestments, it stated that the company had a legal battle with Nigerian National Petroleum Company Limited (NNPCL), which was resolved only in June this year.

It noted: “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 to conduct its due diligence as required under the PIA.

“MPNU, by the letter dated July 18, 2024, provided the information requested by the Commission.”

Accordingly, MPNU’s application to the Commission for consent is undergoing due diligence review, under the same Divestment Framework applied to the NAOC-Oando and Equinor-Chappal divestment. The Commission’s due diligence process is ongoing and within the 120-day timeline required by the PIA.”

The Commission assured 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 guided by law and professionalism, the regulator said it would continue to pursue its statutory mandate in a legal, independent, technical, commercial, and professional manner, operating under the authority of the PIA.