The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe on Wednesday, announced the successful completion of the divestment of some International Oil Companies (IOCs).
The IOCs that have completed their divestments, according to Komolafe, are Nigerian Agip Oil Company (NAOC) which has now been divested into Oando, and Equinor which has now become Project Odinmin
Speaking at the NOG Energy Week with the theme, “Showcasing opportunities, driving investment and meeting energy demand,” Komolafe noted that the divestment status of Shell Petroleum Development Company of Nigeria (SPDC) to Renaissance is under investigation as documentation sent to the commission for due diligence is under scrutiny.
He stated further that the divestment of Exxon Mobil (MPN) to Seplat is inconclusive as no documentation for the transaction was sent to the commission.
The NUPRC Boss told participants that the divestment process needed to be carefully looked into as countries like Lebanon, Canada, Brazil, Australia, New Zealand, and the UK had bad experiences with their divestment process.
He added that the NUPRC has been mandated to protect the interest of Nigeria particularly in terms of investments made in the oil and gas sector.
Komolafe said, “We were able to review examples of countries that were not afraid to divest and had very bad experiences. We looked at an example of Lebanon, Canada, Brazil, Australia, New Zealand, and the UK.
“As a country, and as a regulator, we do not want that to happen for our nation. While we recognize the right of investors to do their best, the security of the national interest must be guaranteed.
“I find it necessary to announce here this afternoon, the status of these four divestments. I’m happy to announce that Nigerian Agip Oil Company (NAOC) to Ocean and Oil (OANDO), Equinor to Project Odinmim exercise has been completed, and the signing ceremony will be conducted in two days.
“As regards the direction of SPDC to Renaissance, the status is that the regulator has received the documentation and is currently undergoing the necessary due diligence.
“On the MPN – SEPLAT, the regulator, as we speak, is yet to receive the documentation for due diligence.”
Speaking further, Komolafe explained that the NUPRC has proactively put in place the divestment framework that would continue to drive investments into the oil and gas sector in Nigeria.
“The objectives are to ensure that the seller will ensure that the buyer can demonstrate financial capacity and technical capabilities, there are no liquid influences, and the issue of decommission and abandonment will be well situated,” he added.
NUPRC Announces Successful Divestment Of Agip, Equinor is first published on The Whistler Newspaper