The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says international oil companies (IOCs) ready to divest can obtain prompt approval if they compensate host communities.
Gbenga Komolafe, chief executive officer (CEO), NUPRC, spoke during an industry meeting on divestment in Abuja on Friday.
Komolafe said a short-term option for faster approval would entail companies committing to clean up spills and compensating communities.
“We have the undertaking here. The consent here, though fixed for June, could be much shorter. If you agree to take that option, you sign the undertaking knowing that there are obligations to be fulfilled.”
The second long-term option, he said, involves NUPRC identifying and assigning all liabilities. “Our regulatory goal is to ensure that parties in the divestment process conform to the approved divestment guidelines.
“Furthermore, we must ensure that the inherent environmental, host communities, and end-of-life liabilities, i.e., decommissioning liabilities, are accurately identified and assigned to the party best equipped to bear the associated risks,” he said.
This, Komolafe said, requires a comprehensive understanding of regulatory requirements, industry best practices, and the unique challenges associated with oil and gas operations.
Shell Plc, on January 16, agreed to sell its Nigerian onshore oil assets to a consortium of local companies for over $1.3 billion.
In February 2022, Seplat Energy agreed to acquire ExxonMobil’s entire share in its shallow water business, Mobil Producing Nigeria Unlimited (MPNU).
In April 2022, TotalEnergies announced plans to sell its minority stake in a Nigerian oil joint venture, joining other top firms divesting from onshore oilfields in the country.
In September 2023, Oando also disclosed that it had signed a deal to acquire 100 percent of Eni’s shares in Nigerian Agip Oil Company Limited (NAOC Ltd).
Meanwhile, Equinor, the Norwegian oil firm, had said it agreed to sell its Nigerian business, including the company’s stake in Agbami oil field, to Chappal Energies, a Nigerian-owned firm.