Oil, gas assets can only be transferred upon the grant of Ministerial Consent – NUPRC

By Abiodun OBA

Oil and Gas assets in Nigeria can only be transferred in accordance with the requirements of the Petroleum Industry Act (PIA 2021).

Oil and Gas assets in Nigeria could only be transferred in accordance with Petroleum Industry Act PIA (where applicable), the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets, 2021 (together with the “Applicable Laws”).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) clarified in a statement on Saturday.

NUPRC’s Chief Executive (CCE), Mr Gbenga Komolafe, reacted in the statement to the ongoing social media discussions that certain International Oil Companies have completed sales of some of their assets to some indigenous companies.

Komolafe said that the transfer could only be consummated upon the grant of Ministerial Consent, following a recommendation from the commission, and satisfaction of the conditions for the grant of the consent by the Minister.

“The attention of the NUPRC has been drawn to the ongoing discussions in the social media suggesting that certain International Oil Companies (“Divesting Companies”) have completed the sale of some of their oil and gas assets to some Nigerian companies.

“NUPRC wishes to clarify that oil and gas assets in Nigeria can only be transferred in accordance with the requirements of the PIA, Petroleum Act (where applicable), the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets, 2021 (together the “Applicable Laws”).

“Under Nigerian law, while the entering into of a Sale and Purchase Agreement (SPA) between an assignor and an assignee constitutes an agreement to sell the relevant licence or lease in accordance with the terms of the SPA, the transfer can only be consummated upon the grant Of Ministerial Consent,” he said.