The Federal Government has announced the approval of ExxonMobil’s $1.28 billion divestment of its oil and gas assets to Seplat Energy.

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, announced this at the official launch of the Project 1MMBOPD Initiative and commemoration of the third anniversary under the Petroleum Industry Act (PIA 2021) in Abuja on Monday, October 21, 2024.

Komolafe also disclosed approval of divestments of Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited, Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited, and TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited.

Komolafe disclosed that the federal government processed five divestment applications but only four applications were approved.

However, the NUPRC boss said the divestment of Shell Petroleum Development Company Limited’s (SPDC) onshore and shallow water assets to Renaissance Africa Energy Company Limited could not scale regulatory test.

He said: “We are happy today to announce the status of divestment exercise conducted diligently by the Commission in line with the provisions of the PIA.

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“Out of the total of five divestment applications for consent received by the Commission, a total of four (representing 80 per cent) passed regulatory test and secured ministerial consent.

“The transactions are Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited and Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited.

“Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited and TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited.”

Komolafe, who did not give reasons for the government’s decision to decline Shell-Renaissance divestment, said the government was committed to ensure that all transactions comply with the PIA.

He said the NUPRC, in operationalising the assets divestment principle, developed seven regulatory pillars to guide divestment in the upstream oil sector for sanity and protection of national interest.

Komolafe added: “Time will not permit us to reel out several other technical, operational, commercial and strategic initiatives of the commission which will be alluded to in other segments of this anniversary.

“We are indeed humbled by the accolades received in the past three years, but we are mindful not to rest on our oars.

“Our primary attention is focused on the strategic view of the future of the industry – one of which is the realisation of the government’s mandate for increased production and enhanced federation revenue.”

ExxonMobil’s $1.28 billion divestment to Seplat Energy marked a significant milestone in the transaction first announced in February 2022 and expected to nearly quadruple Seplat’s oil output to over 130,000 barrels per day.

The Star