The federal government has sanctioned the divestment of four international oil companies, as announced by the CEO of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe.
Komolafe made this disclosure on Wednesday during the commission’s launch of the project 1 million barrels of oil per day initiative.
He stated that the commission has received applications for regulatory approval related to five divestment transactions.
According to him, the approved divestment deals include Eni’s sale of the Nigerian Agip Oil Company (NAOC) to Oando Plc, as well as Equinor Nigeria Energy Company Limited’s divestment to Project Odinmin Investments Limited.
Additional approved divestment deals include TotalEnergies’ agreement with Telema Energies and ExxonMobil’s sale of Mobil Producing Nigeria Unlimited to Seplat Energy.
These transactions further illustrate the government’s strategy to enhance operational efficiency and encourage investment in Nigeria’s oil sector.
The NUPRC boss confirmed that the four divestment deals have also received ministerial consent.
However, he noted that the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited did not pass the regulatory test.
“Currently, we have processed four of the transactions and four of them have received ministerial consent,” he said.
He added, “The four transactions are the transactions in respect of Equinor–Project Odinmim. That has been recommended by the regulator in line with the provisions of the Petroleum Industry Act and it has received ministerial consent.
“Also, the transaction in respect of Agip to Oando, that has equally been processed in line with the established regulatory pillars and that has equally received ministerial consent and that has been communicated accordingly.
“Also, a transaction in respect to ExxonMobil-Seplat has equally successfully been recommended by the regulator and I am happy to announce that has received ministerial consent. Also, a transaction in respect of 10 percent divestment by TotalEnergies (to Telema Energies) has equally been completed by the regulator and has received ministerial consent.
“All in all, out of the five major divestment transactions that were referred to the commission for processing, the commission for the first time in history ensured that robust regulatory framework was established in line with the PIA.”
Komolafe stated that the divestment process has been institutionalized through regulation, emphasizing that the commission has diligently processed all transactions.
This structured approach aims to ensure transparency and compliance within the sector while facilitating investment opportunities.
