Ejiofor Alike
Sturdy indications have emerged that the apex regulator of Nigeria’s upstream oil sector, the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), has moved to avert any potential delay in granting consent to the sale of $1.3 billion ExxonMobil’s 40 p.c stake in Mobil Producing Nigeria Limitless’s (MPNU) property to Seplat Vitality Plc.
The transaction between ExxonMobil and Seplat Vitality Plc, began over two years in the past however has not but been concluded.
NUPRC’s Chief Govt Officer, Gbenga Komolafe, had on the Africa Oil Week (AOW) in Cape City, South Africa, hinted that: “We’re very optimistic that events to the transaction will return, take a look at the place of the regulator and are available again by abiding by the provisions of Nigerian legal guidelines and the suitable factor shall be carried out.”
Nonetheless, a supply on the Ministry of Petroleum instructed THISDAY final evening that: “It’s a quite simple matter. When the thought to promote the property got here up, the NUPRC didn’t say no. It solely insisted that the method stipulated in Part 14 of the 2019 Joint Working Settlement (JOA), be adopted.
“The JOA, which governs the Joint Enterprise operations between the Co-Venturers, clearly said that they attain an settlement amongst themselves as a situation for getting NUPRC’s consent.
“In keeping with the regulation, the fee had suggested co-venturers to conform as a result of the marriage-like sort of relationship they’ve can’t be dissolved with out the settlement of the events.
“So, the Co-Venturers need to get again to the regulator to talk with one voice that they’ve agreed to promote the property. This is step one. There are additionally different steps, together with the assembly of neighborhood obligations and dedication to the environmental restoration of manufacturing websites.
“As a regulator, NUPRC upholds the regulation as contained within the Petroleum Trade Act (PIA), and pointers on task of pursuits in any way, together with share gross sales. This explains why it has already put in place a sturdy template to information divestment in Nigeria’s oil and fuel trade.
“It is vitally essential that each one events ought to respect the sanctity of regulation and JOA between Co-Venturers within the deal. In the mean time, I do know that the Co-Venturers are nonetheless within the technique of resolving their business points and show respect for the sanctity of JOA. When the events have reached an settlement and get again to the regulator, I’m optimistic that the NUPRC will maintain a workshop to evaluation their submission and grant consent.
“NUPRC has intuitively put in place preparations to make it simpler for traders to shut offers. I’m additionally optimistic that the Fee will grant what’s also known as Topic-to-Clearance Consent inside 30 days, offered the Co-venturers show sturdy dedication to assembly their obligations.”
Equally, the Nationwide President of Oil and Gasoline Service Suppliers Affiliation of Nigeria, Colman Obasi, mentioned: “Already, the Engr. Komolafe-led workforce on the NUPRC has carried out a lot to allow companies within the trade. As an example, NUPRC developed rules, giving that means and intent to the PIA, to make sure that all bottlenecks related to regulatory processes are eradicated or minimized, to entrench seamless upstream petroleum operations.
“The gazetted rules embrace Petroleum Licensing Spherical Laws 2022, Petroleum Royalty Laws 2022, Conversion and Renewal (Licences and Lease), Nigeria Upstream Petroleum Host Communities Improvement Laws 2022, Home Gasoline Supply Obligations Laws 2022, Nigeria Upstream Petroleum Measurement Laws 2023, Manufacturing Curtailment and Home Crude provide Obligation Laws, 2023, Frontier Basins Exploration Fund Administration Laws, 2023, Nigeria Upstream Decommissioning and Abandonment Laws 2023, Important Crude Oil and Gasoline Discovery Laws, 2023, Gasoline Flaring, Venting and Methane Emission (Prevention of Waste and Air pollution) Laws, 2023 and Nigeria Upstream Petroleum Unitization Laws, 2023.
“The 14 draft rules awaiting gazetting embrace Upstream Petroleum Charges and Lease Laws, Acreage Administration Drilling and Manufacturing Laws, Upstream Environmental Remediation Fund Laws, Upstream Petroleum Security Laws, Upstream Petroleum Environmental Laws, Upstream Petroleum Measurement Laws, Advance Cargo Declaration Laws, Draft Upstream Industrial Operations Laws, Draft upstream Petroleum Code of Conduct & Compliance Laws, Draft Upstream Petroleum Improvement Contract Administration Laws, Draft Upstream Revocation of licences and Lease Laws, Draft Upstream Petroleum Project of Curiosity Laws, Draft Nigerian upstream Petroleum (Administrative Harmonisation) Laws and Draft Modification to the Nigerian Upstream Petroleum Host Communities Improvement Laws 2022.
“The NUPRC has held many stakeholder engagements on the fee’s Draft Regulatory Framework for Vitality Transition, Decarbonisation and Carbon Monetisation and integrated the inputs arising from the engagements into the regulatory framework, which is not going to solely govern the actions of the newly established Vitality Transition and Carbon Monetisation Division of the Fee however these of all the trade in contemplating Vitality Transition in oil and fuel discipline growth.
“As a enterprise enabler, the NUPRC has deliberately attracted many native and overseas traders to Nigeria’s oil and fuel trade, 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, whereas pure fuel rose to 209 trillion cubic ft on January 1, 2024, from 208.83TCF recorded over the corresponding interval final 12 months.
“The fee has taken deliberate steps to drive the last decade of fuel programme declared by the Federal Authorities via extra aggressive growth of the nation’s large fuel sources, enhanced exploration actions, growth of utilisation schemes resulting in fuel reserves progress, elevated fuel manufacturing, maturation of home and export fuel markets, along with fuel flare elimination and commercialisation via the Nigeria Gasoline Flare Commercialisation Programme (NGFCP).”