HEDA Commends NUPRC's Regulatory Framework for Asset Divestment in Oil and Gas Sector

The Human and Environmental Development Agenda (HEDA Resource Centre) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) following the release of the regulatory framework governing asset divestment within the oil and gas sector.

In a statement signed by its Chairman, Olanrewaju Suraju, the foremost civil society organisation, HEDA underscores the importance of upholding due process in asset divestment transactions.

“We commend NUPRC’s emphasis on stringent criteria, including technical capacity, financial viability, and adherence to legal obligations, for potential successor entities,” stated Suraju.

The unveiling of terms and conditions by NUPRC marks a pivotal step towards ensuring transparency and accountability in the divestment process. Mandated by the Petroleum Industry Act (PIA), NUPRC’s regulatory oversight aims to uphold operational excellence and efficiency across the upstream value chain.

In the backdrop of recent developments, the discourse surrounding asset divestment has gained significant traction within the Nigerian oil and gas landscape. The decisions by International Oil Companies to divest assets in response to operational and legal challenges underscore the dynamic nature of the industry.

The commitment demonstrated by NUPRC, as articulated by Engr. Gbenga Komolafe, Chief Executive, during the Nigeria International Energy Summit 2024, underscores the commission’s renewed dedication to promoting fair and transparent practices in asset divestment and host community development.

Suraju further added, “Furthermore, we (HEDA) acknowledge and encourage NUPRC’s focus on safeguarding national interests, particularly with regard to decommissioning and abandonment, host community trust funds, and environmental sustainability.”

HEDA Resource Centre reaffirms its unwavering commitment to promoting integrity and accountability within the oil and gas sector. The organization encourages continued collaboration between regulatory bodies, industry stakeholders, and civil society organizations to ensure responsible, sustainable and environment-friendly management of Nigeria’s oil and gas resources.