By Obinna Uballa
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has defended its decision to approve TotalEnergies’ $510 million divestment of a 12.5 per cent contractor interest in Oil Mining Lease (OML) 118, stressing that the transaction was cleared only after a rigorous due diligence exercise.
In a statement issued in Abuja on Thursday, the Commission’s Head of Media and Strategic Communications, Eniola Akinkuotu, explained that the approval followed a thorough assessment of the financial capacity and technical competence of the assignees, Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration Limited (NAE).
Under the deal, TotalEnergies will transfer 10 per cent to SNEPCo for $408 million and 2.5 per cent to NAE for $102 million, subject to ministerial consent as required by the Petroleum Industry Act (PIA) 2021.
According to the Commission, the verification process confirmed that both companies already have the expertise and resources to sustain exploration, development, and production in OML 118, where they are existing partners.
NUPRC further noted that the approval was conditioned on the assignees assuming TotalEnergies’ decommissioning, abandonment, and host community obligations, thereby shielding the Federal Government from future liabilities.
It said the decision was guided by Section 95 of the PIA, even as it ensured that all regulatory, financial, and technical requirements were satisfied before granting approval.
The Commission added that SNEPCo and NAE would also pay statutory premiums of five per cent and two per cent of the transaction value, respectively, as ministerial consent and processing fees.
The move comes just days after the regulator withdrew an earlier consent for a TotalEnergies-Chappal Energies deal over poor consummation, underlining what NUPRC described as its commitment to “responsible oversight and accountability in the sector.”
