The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive Officer, Gbenga Komolafe, had at the Africa Oil Week (AOW) in Cape Town, South Africa, clarified the cause of inability of the commission to give affirmation or consent to the sale of $1.3 billion ExxonMobil’s 40 percent stake in assets to Seplat Energy Plc.

Citing Section 14 of the 2019 as stipulated in the Joint Operating Agreement (JOA), which governs the Joint Venture operations between the Co-Venturers, and which clearly stated that parties must reach an agreement among themselves as a condition for getting NUPRC’s consent.

He exonerated the apex regulatory body on the prevailing delay surrounding the final consent to the transaction, but blamed the delay on the discordant tones coming from the parties which in turns violate the transaction conditions as stipulated in the JOA.

 “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.”

 “The JOA, which governs the Joint Venture operations between the Co-Venturers, clearly stated that they reach an agreement among themselves as a condition for getting NUPRC’s consent.

“In line with the law, the commission had advised co-venturers to comply because the marriage-like kind of relationship they have cannot be dissolved without the agreement of the parties. So, the Co-Venturers have to get back to the regulator to speak with one voice that they have agreed to sell the assets. This is the first step. There are also other steps, including the meeting of community obligations and commitment to the environmental restoration of producing sites.

 “As a regulator, NUPRC upholds the law as contained in the Petroleum Industry Act (PIA), and guidelines on assignment of interests whatsoever, including share sales. This explains why it has already put in place a robust template to guide divestment in Nigeria’s oil and gas industry,” NUPRC Chief Executive Officer, Gbenga Komolafe Stated.

“It is very important that all parties should respect the sanctity of law and JOA between Co-Venturers in the deal. At the moment, I know that the Co-Venturers are still in the process of resolving their commercial issues and demonstrate respect for the sanctity of JOA. When the parties have reached an agreement and get back to the regulator, I am optimistic that the NUPRC will hold a workshop to review their submission and grant consent.

“NUPRC has intuitively put in place arrangements to make it easier for investors to close deals. I am also optimistic that the Commission will grant what is often referred to as Subject-to-Clearance Consent within 30 days, provided the Co-venturers demonstrate strong commitment to meeting their obligations,” He Said.

But the Chief Executive Officer of the Nigeria’s Oil and Gas sector apex regulatory body expressed his optimism that the both parties will soon come to rallying point of one voice as the commission is poised to resolve all pending issues militating against the transaction.

“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,” He Added.