FG approves the sale of ExxonMobil-Seplat and rejects the Shell-Renaissance agreement

The federal government has approved the disinvestment of four international oil companies (IOCs).

Gbenga Komolafe, the Chief Executive Officer (CEO) of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), spoke on Wednesday at the commission’s launch of the proposed million barrels of oil per day (mmbpd) initiative.

Komolafe said the commission had received the application for regulatory approval for five divestment transactions.

According to the NUPRC CEO, the approved deals are the divestment by Eni of the Nigerian Agip Oil Company (NAOC) to Oando Plc, and the divestment of Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited.

Others are the TotalEnergies-Telema Energies deal and ExxonMobil’s sale of Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy.

The NUPRC said the four agreements also received ministerial approval.

However, he said the divestment of assets from Shell Petroleum Development Company Limited to Renaissance Africa Energy Company Limited could not expand regulatory testing.

“Currently, we have processed four of the transactions and four of them have received ministerial approval,” he said.

“The four transactions are the Equinor – Odinmim Project transactions. This was recommended by the regulator in accordance with the provisions of the Petroleum Industry Act and received ministerial approval.

“Furthermore, the transaction regarding Agip to Oando, which was also processed in accordance with the established regulatory pillars and which also received ministerial approval and was communicated accordingly.

“In addition, a transaction involving ExxonMobil-Seplat was also successfully recommended by the regulator and I am pleased to announce that it has received ministerial approval. Furthermore, a transaction concerning the sale of 10 percent by TotalEnergies (to Telema Energies) was also finalized by the regulator and received ministerial approval.

“In total, of the five major disinvestment transactions that were submitted to the commission for processing, the commission ensured, for the first time in history, the establishment of a robust regulatory framework, consistent with PIA.”

Komolafe said the process had been institutionalized through regulation, adding that the commission had diligently processed all transactions.