… Atiku wants an explanation on Eni/Oando divestment deal
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has reaffirmed its commitment to transparency and regulatory compliance in overseeing the divestment activities of International Oil Companies (IOCs) operating in Nigeria.
In a press statement released on Monday by the Head of the Public Affairs Unit, Olaide Shonola, the Commission provided detailed updates on several high-profile divestments, emphasising that all transactions were conducted in strict adherence to the Petroleum Industry Act (PIA) 2021 and other applicable legal frameworks.
The NUPRC highlighted the successful divestments of Nigerian Agip Oil Company (NAOC) to Oando Petroleum and Natural Gas Company Limited (Oando PNGCL) and Equinor Nigeria to Chappal Energies, noting that these approvals were granted only after thorough evaluations.
“The approvals given to the NAOC-Oando and Equinor-Chappal divestments were in accordance with the Petroleum Industry Act (PIA) 2021, defined regulatory framework, and standard consent approval process set by the Commission under the PIA,” Shonola said.
The statement went on to highlight the Commission’s meticulous approach to ensuring that all regulatory and legal requirements were met before any divestment could proceed. Specifically, the NUPRC detailed the multi-stage process involved in the NAOC-Oando transaction, which included technical evaluations, commercial negotiations, and the final ministerial consent.
“The process was conducted in compliance with the requirements of relevant legislations, regulations, and guidelines including the Petroleum Act, Petroleum Industry Act, Petroleum Drilling and Production Regulations, and the Upstream Asset Divestment and Exit Guidance Framework,” the statement read.
The NUPRC then elaborated on its thorough due diligence process, which involved evaluating potential assignees based on factors such as technical capacity, financial viability, legal compliance, and environmental responsibilities.
“The Commission’s thorough evaluation and due diligence process, anchored on the Seven Pillars of the Divestment Framework, ensured that potential assignees were capable and compliant with legal requirements and that all legacy liabilities were identified and appropriately managed,” the statement noted.
Shonola also addressed the ongoing divestment by Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited, a transaction that has attracted significant public attention. Initially, the Commission withheld its consent due to MPNU’s failure to obtain a waiver of pre-emption rights and the necessary consent from the Nigerian National Petroleum Corporation (NNPC).
However, following the resolution of these issues, the NUPRC has resumed its due diligence on the transaction, as the statement clarified, “MPNU’s application to the Commission for consent is currently undergoing due diligence review, under the same Divestment Framework applied to the NAOC-Oando and Equinor-Chappal divestment.”
The NUPRC further emphasised that the public’s right to know remains central to its operations, aiming to build trust by providing transparency in the high-stakes divestment processes and ensuring that stakeholders are fully informed about the Commission’s activities.
“NUPRC, as an organisation guided by law and professionalism, will continue to pursue its statutory mandate in a legal, independent, technical, commercial, and professional manner, operating under the authority of the PIA,” the statement concluded.
Meanwhile, Former Vice President, Atiku Abubakar, on Sunday, asked the federal government to explain why Oando Plc owned by President Bola Tinubu‘s nephew, Wale Tinubu, got an accelerated approval to buy the onshore assets of Italian oil giant, Eni, ahead of other transactions such as the Shell/Renaissance deal and the Mobil/Seplat transaction.
In a statement by the Special Assistant on Public Communication to Atiku, Phrank Shaibu, the former vice-president doubled down on his allegation that Oando was being given undue and preferential treatment in the oil and gas sector to the detriment of more competent investors.
The presidential candidate of the Peoples Democratic Party (PDP) in the 2023 election also knocked the House of Representatives for failing to take proper action on the Nigerian National Petroleum Company Limited (NNPC) which has now gone ahead to “mortgage the country’s national oil assets to vested interests.
“Within just eight months, the Nigerian Upstream Production Regulatory Commission (NUPRC) approved a deal which 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. In fact, the only deal that has fully scaled through so far is the one involving Oando. We now know why it got accelerated approval,” the former vice president said.
He also slammed the Tinubu administration for implementing what he described as a sham subsidy regime as revealed in the financial statement recently released by the NNPC.
He said: “Tinubu visited the FMDQ in New York, visited Qatar, visited France where he told lies about removing petrol subsidies.
“Obviously, this is not a man who is serious about attracting Foreign Direct Investment (FDI). More worrisome is that he is not even brave enough to admit that subsidy is being paid. The NNPC admits that N7.8 trillion is owed to the national oil company by the Nigerian government.
“The International Monetary Fund (IMF) estimates that subsidy payments this year will constitute 3 per cent of Gross Domestic Product (GDP), which is about $7.5 billion. This will be about N11.8 trillion.
“Yet, the petrol scarcity continues to linger while the Tinubu administration continues to frustrate the Dangote Refinery and even its own NNPC facilities.
“Obviously, the subsidy regime has become an even wider conduit through which monies for funding the 2027 election will come from.”
Atiku stated that democracy ought to be the government of the people, for the people, and by the people, but maintained that democracy in Nigeria had become the government of Tinubu, by Tinubu, and for Tinubu and his family members.
In July 2023, he said the House of Representatives, following the adoption of a motion moved by Miriam Onuoha directed NNPC to suspend the acquisition of OVH assets pending an investigation by its committee.
Despite this order and several others, Atiku argued that the NNPC ignored and went ahead to transfer its ownership and properties in its retail arm to OVH, thereby mortgaging the future of Nigerians.
“Despite the rot in the oil sector, the head of the NNPC, the head of the NUPRC, and the head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) continue to keep their jobs. This is clear evidence that they are fulfilling the mandate given to them by Tinubu,” Atiku added.
Furthermore, Atiku pointed out that the NNPC lied in its response to his statement last week, as it is on record that the Mele Kyari-led management appointed Huub Stoksman, a former Chief Executive Officer of OVH Energy, as Managing Director of NNPC Retail.
Also, he pointed out that Mumuni Dangazau, the former Chief Operating Officer of OVH Energy, became his Special Adviser Downstream, long before the consummation of what he said was the incestuous marriage of the entities.
