$783m Oando-Agip deal follows due process, complies with applicable regulations – NUPRC replies to Atiku

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday approved Oando Plc’s $783 million acquisition of Nigerian Petroleum Agip Company (NAOC), saying it was in accordance with existing laws and procedures.

Olaide Shonola, Head of the Upstream Regulator’s Public Affairs Unit, said in a statement that the NUPRC’s stated commitment to transparency and trust in the public’s right to know about its regulatory actions made the explanation important.

Ripples Nigeria reports that former Vice President Abubakar Atiku has taken issue with the expedited nature of the transaction, saying President Bola Tinubu’s relationship with local oil company CEO Wale Tinubu made the sale unnecessary and rushed.

In response, the NUPRC stated that “the Commission wishes the public to be aware that the approvals granted for the divestment of NAOC-Oando and Equinor – Chappal are in accordance with the Petroleum Industry Act (PIA) 2021, the established regulatory framework and the standard approval process established by the Commission under the PIA”.

On the divestment by Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited (Seplat), which Atiku said had been subject to undue delay, the statement noted that it was also currently undergoing the same approval process and was expected to be completed within the 120-day period granted by the PIA.

“In addition, the commission’s comprehensive evaluation and due diligence process, based on the Seven Pillars of the Divestment Framework, ensures that the potential transferee is capable and compliant with legal requirements and that all legacy liabilities are identified and managed appropriately.

“The commission then makes recommendations to the Hon’ble Minister of Petroleum Resources based on a comprehensive assessment that includes the timeframe for review of applications under the PIA and the commission’s regulatory process,” the upstream regulator explained.

For comparison, it was stated that MPNU through a letter dated February 24, 2022, informed the commission of its intention to transfer 100 percent of its issued shares to Seplat Offshore Energy Limited.

He said the commission did not approve the assignment because MPNU failed to obtain a waiver of pre-emption rights and the approval of NNPC, its partner in the block, for divestment.

READ ALSO: Atiku demands clarification on Oando’s swift approval for AGIP/ENI acquisition from Nigerian government

“It is worth noting that NNPC’s right to preempt and approve under the NNPCL/MPNU Joint Operating Agreement is the subject of Suit No. FCT/HC/BW/173/2022 Nigerian National Petroleum Company Limited vs. Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., Mobil Exploration Nigeria Inc. and Nigerian Upstream Petroleum Regulatory Commission,” he added.

However, in June 2024, NNPC and MPNU, the commission said, resolved their dispute through a letter dated June 26, 2024, notifying the commission of the settlement of the dispute.

“Following the resolution of this dispute, the commission communicated its decision of no objection to the assignment by letter dated 4 July 2024 and requested MPNU to provide the information and documentation required under the commission’s due diligence checklist to enable the Commission to conduct due diligence as required under the PIA.

“MPNU through a letter dated 18 July 2024 has provided the information requested by the commission. Accordingly, MPNU’s application for approval to the commission is currently undergoing due diligence review, based on the same divestment framework applied to the NAOC-Oando and Equinor-Chappal divestments.

“The commission’s due diligence process is ongoing and within the 120-day timeframe required by PIA,” he added.

Meanwhile, the AEC African Energy Chamber praised the deal and described it as a milestone transaction.

According to AEC Executive Chairman NJ Ayuk, this underscores the influence of local exploration and production companies and their strong belief in harnessing Africa’s full energy resources.

“Oando is delivering on its promise to expand its upstream investments and position in Nigeria’s oil and gas sector.

The AEC congratulates and supports Oando on the successful completion of this important transaction, as it underscores the influence of local exploration and production companies and their unwavering belief in harnessing the full potential of Africa’s energy resources.

We look forward to exploring this deal and its implications for the sector at AEW this year,” said NJ Ayuk.

By: Babajide Okeowo

The post $783m Oando-Agip deal follows due process, complies with applicable rules – NUPRC Replies Atiku first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.