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Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has expressed optimism that parties to the Share Sale of the local unit of Exxon Mobil will engage themselves within Nigerian law and follow due process if they are to conclude the effective transfer of JV assets from Exxon Mobil to Seplat.
Komolafe, who spoke to reporters on the sidelines of the African Oil Week in Cape Town, South Africa, emphasised that the stalemate on the transaction is purely a commercial and not a regulatory issue. He urged co-venturers NNPC and Exxon Mobil to play by the law.
The regulator had last year refused to approve the $1.28 billion sale, a deal some in the industry say is key to getting much-needed investment into Nigeria’s oil and gas sector.
“We are very optimistic that parties to the transaction will go back, look at the position of the regulator and come back by abiding by the provisions of Nigerian laws and the right thing will be done,” Komolafe said.
He said once Exxon had made proper agreements with its joint-venture partners in the assets, “the regulator will do what it needs to”.
Africa Oil Week is attended by the crème of the oil industry from Africa and around the world.
NNPC had opposed the sale, arguing it had pre-emptive rights to the assets. But talks have continued between parties since the advent of the administration of President Bola Tinubu some five months ago.
Nigeria, Africa’s largest oil exporter, relies on petroleum for 90% of its foreign exchange and half its budget. But production has declined in recent years due to underinvestment and theft. Several international oil majors are looking to sell onshore assets, but those deals have run into legal and regulatory hurdles.
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