NUPRC Accelerates Oil Asset Divestment, Set To Boost Nigeria’s Daily Production by 700,000 Barrels.
According to sources familiar with the matter, the NUPRC is expediting the regulatory oversight process for ongoing oil assets divestment by International Oil Companies (IOCs). Upon conclusion, Nigeria is poised to increase its daily production volume by at least 700,000 barrels, potentially reaching 2 million barrels per day by the year’s end.
“Many of the new investors, mostly indigenous businessmen, that are taking over the multi-billion dollar facilities, are already waiting in the wings, but had been delayed, in a bid to ensure strict adherence to the rules as provided by the Petroleum Industry Act (PIA),” a source in the know of the goings-on within the oil and gas industry said.
“The NUPRC, under Mr Gbenga Komolafe is speeding up approvals and plans to increase oil production by divesting IOCs and increase oil production by as much as 700,000 bpd when these processes are concluded,” the source added.
Indigenous businessmen, set to take over these multi-billion dollar facilities, have been eagerly awaiting the regulatory green light, ensuring strict adherence to rules outlined in the Petroleum Industry Act (PIA).
Under the leadership of Mr. Gbenga Komolafe, the NUPRC is fast-tracking approvals, aiming to boost oil production through IOC divestments. One notable deal in progress is Seplat Energy’s acquisition of oil and gas assets from Mobil Oil Producing Nigeria Unlimited (MPNU), expected to ramp up output by 300,000 to 400,000 barrels per day upon completion.
“Each of those companies will be given an option to have a fast-track process and get immediate approval or await the audits. And if there’s an audit, they are going to play according to the audits,” the source said.
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Komolafe emphasized the commission’s commitment to facilitating divestments, announcing a newly developed framework to guide ministerial consent applications. This framework encompasses seven key pillars, including technical capacity, financial viability, and adherence to environmental and social governance principles.
“The commission is pushing our production beyond 2 million barrels a day before the end of December with this new move,” the official who declined to be named told newsmen.
