by Nurat Uthman
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved the sale of key onshore oil assets by Eni and Equinor, citing the head of the agency, Gbenga Komolafe.
The decision, announced at an energy conference in Abuja, paves the way for acquisitions by Oando and newcomer Project Odinmim.
Eni’s Nigerian Agip Oil Company (NAOC) unit’s assets will transfer to Oando, while Equinor’s assets will go to Project Odinmim.
These approvals are key as they had been pending for months, awaiting the petroleum minister’s sign-off under a recently enacted oil industry law.
Despite the progress, approvals for ExxonMobil’s $1.3bn asset sale to Seplat and Shell’s divestment to Renaissance are still pending.
“The signing ceremony will be conducted in the next few days,” Komolafe stated, indicating imminent finalisation of the approved transactions
In September, Eni announced the sale of its NAOC unit to Oando, which included interests in four onshore oil mining leases (OML) 60, 61, 62 and 63.
However, complexities remain, as hinted by Oando’s CEO, Ainojie Alex Irune.
“We had four transactions; two were approved, one on a yellow flag and the other in abeyance,” Irune revealed during the conference.
Oil companies have been gradually withdrawing from their onshore fields in Nigeria, which have been plagued by theft, vandalism and pollution, to concentrate on deepwater explorations.
In line with this trend, earlier this year reports emerged that TotalEnergies is considering divesting its 10% stake in the Shell Petroleum Development Company of Nigeria, an onshore oil joint venture facing operational and environmental challenges.
In an effort to expedite the process, the NUPRC offered faster approvals for pending asset sales by the majors in May, on the condition that they address spills and compensate communities directly, rather than waiting for authorities to determine liability, which could prolong the deals.
