NUPRC Asserts Ministerial Consent Requirement for Transfer of Oil and Gas Assets
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has stated that the transfer of ownership of oil and gas assets in Nigeria can only occur with the consent of the minister, in accordance with the 2021 Petroleum Industry Act (PIA).
Gbenga Komlafe, the chief executive of the NUPRC, clarified this in response to ongoing discussions on social media concerning the completion of sales of assets from international oil companies to indigenous companies.
He said, “NUPRC wishes to clarify that oil and gas assets in Nigeria can only be transferred in accordance with the requirements of the PIA, Petroleum Act (where applicable), the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets, 2021 (together the “Applicable Laws”)
“Under Nigerian law, while the entering into of a Sale and Purchase Agreement (SPA) between an assignor and an assignee constitutes an agreement to sell the relevant license or lease in accordance with the terms of the SPA, the transfer can only be consummated upon the grant Of Ministerial Consent,” he added.
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Gbenga Komlafe, the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has outlined that the Commission will conduct a thorough and comprehensive analysis of any transaction before recommending to the Minister for the granting of Ministerial Consent for the transfer of a license or lease.
This assessment will encompass technical and financial competence, adherence to environmental, social, and corporate governance sustainability, commitment to decommissioning and abandonment obligations, host community obligations, industrial and labor relations frameworks, and the absence of legal impediments that could hinder the completion of the transaction.
