In a bid to foster transparency and efficiency in Nigeria’s oil and gas sector, Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), spearheaded an industry dialogue focused on divestment.
The dialogue, which centered on the divestment framework initiative, attracted key stakeholders within the oil and gas industry.
Emphasizing the Commission’s commitment to conducting all transactions smoothly and transparently, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Engr Gbenga Komolafe noted that the overarching objective of the dialogue was to ensure that the industry remains informed and engaged, facilitating the seamless conclusion of ongoing divestment transactions aimed at boosting production within the country.
He added that the core objectives guiding the divestment framework include establishing standard protocols for oil and gas assets, safeguarding national interests, ensuring successor capacity, protecting benefits for host communities, and enforcing environmental liabilities arising from decommissioning.
During discussions on exploring strategies to ramp up production, two options were deliberated upon. These options are the Short-term option which grants ministerial consent while deferring liabilities until due diligence is complete. This entails the buyer assuming some liabilities initially, with the Commission releasing them upon completion of due diligence. While the Wait-and-See approach has to do with completing due diligence to ascertain liabilities before proceeding.
The Chairman of IPPG, Abdulrazak Isa, and his counterpart from the OPTS, Okunbor Osagie, commended NUPRC’s commitment towards expediting the divestment process.
On his part, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya Orji underscores the necessity of shared responsibility while highlighting the importance of clarifying liability ownership between NUPRC and NEITI.
Affirming their commitment towards exploring the options presented by the NUPRC for providing feedback, stakeholders acknowledged the financial obligations associated with the divestment process and the need for careful consideration in line with industry best practices.
The proposed completion dates for due diligence were set for June and August.
