NUPRC defends Oando, Seplat divestments amid Atiku’s criticism
CHIGOZIE AMADI
The Nigerian Upstream Petroleum Regulatory Commission has defended its regulatory processes following criticism from former Vice President Atiku Abubakar regarding recent oil and gas divestments by international oil companies, including Oando and Seplat.
In a detailed response on Monday, the Head of the Public Affairs Unit at NUPRC, Mrs. Olaide Shonola, emphasised that all divestment approvals, particularly those involving Oando and Seplat, were conducted with full compliance to the Petroleum Industry Act (PIA) 2021 and established regulatory frameworks.
“The Commission has been thorough in adhering to the legal and procedural requirements set by the PIA, ensuring transparency and accountability at every step,” Shonola stated.
Atiku, who was the presidential candidate for the Peoples Democratic Party in 2023, had earlier raised concerns about what he perceived as expedited approvals granted to Oando, a company linked to a relative of President Bola Tinubu, to acquire onshore assets from AGIP and ENI.
Atiku challenged the All Progressives Congress-led Federal Government to clarify the process, suggesting it may have been influenced by political connections.
In its response, the NUPRC reiterated its commitment to transparency and fairness in its oversight of Nigeria’s oil and gas sector.
“We wish to assure the public that all approvals, including those given to Oando and Chappal Energies, were strictly in line with the regulatory processes outlined in the PIA.
“The divestments were assessed based on technical capacity, financial viability, legal compliance, and environmental considerations, among other critical factors”, Shonola explained.
The NUPRC also provided detailed timelines and steps taken during the divestment process.
For instance, the Commission highlighted that it had received notification from the Nigerian Agip Oil Company in May 2023 regarding its intention to divest its participating interests in certain oil and gas assets.
“Following rigorous evaluations, including technical and financial assessments, the Commission granted NAOC the necessary approvals to proceed with the transaction. Every step was meticulously documented and aligned with both national and international best practices,” Shonola said.
Addressing concerns related to the divestment by Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited, Shonola disclosed that the process is still ongoing.
“MPNU’s application is undergoing due diligence review, and we expect to complete the process within the 120-day timeline as stipulated by the PIA,” she noted.
She further reaffirmed the NUPRC’s dedication to maintaining the highest standards of professionalism and independence in fulfilling its statutory mandate.
“Our focus remains on ensuring that all actions taken by the Commission are rooted in law and guided by the principles of fairness and equity,” Shonola concluded.
