NUPRC Assures Of Seamless, Transparent Process, As Divestment Of Shell OML Assests Begins.

The Nigerian Upstream Petroleum Regulatory Commission, NUPRC has officially begun the process of divestment of SHELL OML asset by SPDC to local operator, Renaissance Energy with a framework of six guidelines that would ensure the investment is in line with international best practice and win -win for all the parties.

Speaking at a Due Diligence workshop aimed at fine-tuning the sales of the asset in Abuja on Monday ,the Commission Chief Executive,NUPRC, Gbenga Komolafe said the regulatory commission is committed to free entry and free exit business principles aimed at encouraging investors in the upstream sector.

In January 2024, Shell agreed to sell its Nigerian onshore oil business, Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium of local companies for more than $1.3 billion.

The assets being considered have an estimated
total reserve of 4.96 billion barrels of oil, 1.77 billion barrels of condensate, 28.16 trillion cubic feet of
associated gas and 28.11 trillion cubic feet of non associated gas.

This due diligence meeting organised by the Nigerian Upstream Petroleum Regulatory Authority is to ensure a smooth and seamless sales of the asset.

The NUPRC boss explained that the regulator is committed to facilitating and supporting investment initiatives that align with national development goals.

Accordingly ,companies also known as the ‘successor entity’ interested in buying assets from IOCs must have the Technical Capacity, Financial Capability, Fulfilment of Legal Requirements, Decommissioning and Abandonment Plan, Host Community Trust Fund, Industrial Relations and Data Repatriation.

For decades, Shell has been at odds with local communities over oil spills and accusations of human rights violations.

Recently, Asset divestment has become a major talking point following the announcements from International Oil Companies exiting Nigerian onshore and shallow water terrains due to operational and legal issues. This has led to the sale of their assets to indigenous companies.