NUPRC vows to uphold strict standards in oil asset divestment approvals

2026-03-25 - 16:23

By Davies Iheamnachor PORT HARCOURT — The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has reiterated that it will not approve any oil asset divestment that fails to meet its established regulatory requirements. The position was restated at a community town hall meeting on oil divestment and transition accountability in the Niger Delta, held in Port Harcourt. The event was organised by the Human and Environmental Development Agenda (HEDA Resource Centre), with support from Transparency International (Australia) and the Natural Resource Governance Institute (NRGI). Speaking at the forum, the Executive Director of NUPRC, Mrs. Oritsemeyiwa Eyesan, represented by Mr. Success Ikpe, Assistant Director of the commission in Port Harcourt, said all divestment processes must comply with strict standards before approval is granted. She explained that the commission has developed a comprehensive regulatory framework to guide oil asset divestments, ensuring transparency, accountability, and protection of national and community interests. According to her, one of the key requirements is that the acquiring company must demonstrate sufficient technical and financial capacity to manage the assets effectively. She added that issues such as decommissioning and abandonment obligations would also be carefully assessed. “As you know, the divestment of oil and gas assets is a legitimate commercial decision of operators. However, under the Petroleum Industry Act 2021, such transactions are subject to strict regulatory oversight to ensure they are conducted responsibly and in a manner that protects national interests and host communities,” she said. Eyesan noted that the commission is committed to ensuring that outgoing operators meet their obligations, while incoming companies are properly evaluated for their ability to sustainably manage the assets. She also emphasised that NUPRC is strengthening its monitoring and enforcement mechanisms to ensure compliance with statutory provisions and to promote transparency throughout the divestment process. “The commission wishes to emphasise that no divestment will be approved without meeting the required standards,” she added. In his remarks, Executive Director of HEDA, Arigbabu Suleimon, said the town hall was convened to engage stakeholders on the implications of ongoing divestments in the oil and gas sector. He noted that the transition of oil assets raises important concerns for host communities, particularly regarding environmental management, infrastructure, and continuity of social investments. Suleimon explained that the dialogue aimed to provide a platform for stakeholders to discuss these issues and ensure that community interests are adequately considered during the divestment process. He added that the shift in asset ownership across the Niger Delta underscores the need for transparency, accountability, and inclusive engagement as the sector evolves.