The Nigerian Upstream Petroleum Regulatory Commission says the acquisition of the Nigeria Agip Oil Company by Oando Plc conforms with the provisions of the Petroleum Industry Act.
It disclosed this in a statement on Monday while reacting to allegations that greeted the Oando-Agip deal.
One of the critics of the divestment was former Vice President Atiku Abubakar, who said Oando was being given “undue and preferential treatment in the oil and gas sector to the detriment of more competent investors.”
Atiku also slammed the House of Representatives for allegedly failing to take proper action on the Nigerian National Petroleum Company Limited which he alleged has gone ahead to “mortgage the country’s national oil assets to vested interests.”
He was quoted as having stated that within eight months, the NUPRC approved a deal that saw the divestment of ENI/AGIP onshore assets to Oando.
“Within that same period, Nigeria controversially withdrew all litigation against Shell/ENI in the OPL 245 scandal in what has been described as a quid pro quo.
“However, the attempt by SEPLAT to buy Mobil’s onshore assets has continued to stall for the last three years even as the consent letter remains on Tinubu’s table.
“The deal between Renaissance and Shell continues to stall. The only deal that has fully scaled through so far is the one involving Oando. We now know why it got accelerated approval,” Atiku stated.
Reacting in a statement by its Head of Public Affairs Unit, Mrs Olaide Shonola, the NUPRC said, “In line with the Nigerian Upstream Petroleum Regulatory Commission’s avowed commitment to transparency and belief in the right of the public to know about our regulatory activities, we wish to keep the public abreast of the status of certain divestments that have received ministerial consent and the divestment by Mobil Producing Nigeria Unlimited, which has been subject to a lot of public attention.
“As the public may be aware, ministerial approval was recently granted to the divestment by NAOC to OandoPetroleum and Natural Gas Company Limited and OANDO Oil II Cooperatief U.A. (OANDO Cooperatief) (together the ‘Oando Entities’) and by Equinor Nigeria to Chappal Energies.
“The commission wishes the public to be aware that the approvals given to the NAOC-Oando and Equinor–Chappal divestments were in accordance with the Petroleum Industry Act 2021, defined regulatory framework, and standard consent approval process set by the commission under the PIA.”
According to the NUPRC, the divestment by MPNU to Seplat Energy Offshore Limited is currently undergoing the same consent approval process and is expected to be completed within the 120-day timeline provided by the act.
The NUPRC disclosed that the consent to Oando and Chappal Energies was fulfilled according to the regulatory process.
“In respect of the NAOC divestment, NAOC by a letter of May 16, 2023, notified the commission of its intention to proceed with the divestment of participating interests in some of its oil and gas assets. The commission by a letter dated May 21, 2023, requested NAOC to provide information on the proposed assignee.
“NAOC by another letter dated July 24, 2023, notified the commission that it had completed the technical evaluation of the companies shortlisted for the proposed transaction and submitted Oando PNGCL and Oando Coöperatief as qualified companies for the consideration of the Commission.
“The commission, by a letter dated August 9, 2023, approved NAOC to proceed to the commercial stage of the transaction. Consequently, NAOC, vide a letter of November 7, 2023, made a formal application requesting the consent of the Minister of Petroleum Resources to the NAOC divestment.
“In line with its processes, the commission by a letter dated December 14, 2023, requested the information contained in the Commission’s due diligence checklist on the transaction, and NAOC by a letter dated January 10, 2024, provided the information requested via the Commission’s letter dated December 14, 2023,” the statement explained.