Nigerian Regulatory Body Outlines Requirements for Potential Investors in SPDC Assets
In a significant development for Nigeria’s oil and gas sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled the conditions prospective investors must meet to participate in the divestment of Shell Petroleum Development Company of Nigeria Limited (SPDC) assets.
During a gathering in Abuja on Monday, NUPRC’s Chief Executive, Engr. Gbenga Komolafe, detailed the criteria essential for investors eyeing SPDC’s assets as the company prepares to exit its operations in Nigeria. The workshop aimed to foster discussions among potential investors and stakeholders regarding the proposed divestment of SPDC’s participating interests.
The assets under consideration, currently managed by SPDC, include Oil Mining Leases (OMLs) initially awarded as Oil Exploration Licences (OELs) in 1949, covering southern Nigeria and Cameroon. Over the years, these assets have played a pivotal role in Nigeria’s hydrocarbon landscape, contributing significantly to the nation’s crude and condensate output.
Komolafe emphasized the importance of a comprehensive Divestment Framework consisting of seven key pillars to guide the assessment of applications for Ministerial consent to the SPDC Divestment and similar endeavors. These pillars encompass technical capacity, financial criteria, legal considerations, decommissioning and abandonment costs, environmental responsibilities, labor issues, and data repatriation.
In his remarks, Komolafe stressed the necessity for prospective investors to demonstrate both technical proficiency and financial stability to operate the assets effectively. He underscored the imperative of adhering to legal obligations, resolving outstanding debts and encumbrances, and ensuring robust environmental and social governance practices.
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Furthermore, Komolafe highlighted the critical role of stakeholder cooperation and compliance with regulatory directives from both SPDC and Renaissance Africa Energy Company Limited (Renaissance), the proposed successor entity. He expressed gratitude to President Bola Tinubu for his unwavering support towards attracting investments and fostering the development of Nigeria’s oil and gas sector.
The announcement from NUPRC marks a significant step towards facilitating a smooth transition in Nigeria’s oil industry, underscoring the country’s commitment to fostering a conducive investment environment while ensuring the responsible management of its natural resources.
Source: The Whistler
