The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday, it has approved the application of Seplat-Exxonmobil divestment as it launched operation 1 million per day oil industry production initiative.
According to the Commission’s Chief Executive, Engr. Gbenga Komolafe, the PROJECT is an industry collaborative initiative to co- create solutions and evolve alternative funding mechanisms to unlock incremental oil production in the short-to-medium term with expanded opportunities for all industry stakeholder groups.
The project was launched to mark the establishment of NUPRC as specified in the Petroleum Industry Act (PIA).
Komolafe stated that the new initiative will create value addition for all stakeholders – Producers, Service Providers, Rig Owners, Financiers, Crude Oil off-takers, amongst others. “The Project 1 Million Barrel initiative is pivotal to production ramp-up, energy security, and economic resilience, all in the overall national interest. You may recall that by 1st January this year, we issued the Regulatory Action Plan for 2024 and the near term, to signal direction for the upstream sector and foster operational excellence. The implementation of that Plan has birthed the Project 1 Million Barrels of Oil per day Initiative. The PROJECT is an industry collaborative initiative to co- create solutions and evolve alternative funding mechanisms to unlock incremental oil production in the short-to-medium term with expanded opportunities for all industry stakeholder groups”
Nigeria’s oil industry chief executives
Meanwhile, Komolafe disclosed that out of the five divestment applications for consent received by Commission a total of four, representing 80% passed regulatory test and secured ministerial consent.
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However, the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited could not scale regulatory test.
The successful applications were Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited; Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited, Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited and TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited
