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AfrOil COMMENTARY AfrOil
NUPRC challenge
One of those agencies – specifically, NUPRC – responded to the issuance of ministerial consent by challenging Buhari’s authority to take such action.
Gbenga Komolafe, the commission’s CEO, asserted in a separate statement later on August 8 that Nigeria’s Petroleum Industry Act (PIA) established NUPRC as the sole state entity with the power to assign or transfer such licences, unless prior written consent was given.
“As it were, the issue at stake is purely a reg- ulatory matter and the commission had earlier communicated the decline of ministerial assent to ExxonMobil in this regard. As such, the commission further affirms that the status quo remains,” Komolafe declared in the statement.
As of press time, Buhari had not responded to NUPRC’s move to overturn his bid to approve the deal. Komolafe, for his part, responded to an inquiry from This Day by doubling down on his assertions that the commission was the only state entity with the authority to approve or deny the transfer of ExxonMobil’s stake in MPNU to Seplat Energy.
“Let me just put it simply: As a commission, we work strictly in line with the position of the law, and basically we don’t react on the basis of news making the rounds, but we work strictly in line with the law,” the NUPRC chief said.
“And by virtue of the provisions of the Petro- leum Industry Act, under section 95, subsection 10, 14 and 15, the commission’s powers in these regards are clearly stated. So, regarding the issue you have raised, my clarification will just be an affirmation that the position of the commission stands in respect of the decline of the assets
[sale], without prejudice to any other position.” Komolafe also stressed that NUPRC had informed ExxonMobil of the commission’s stance on the matter. The US super-major, for
its part, has also not commented on the matter.
Rocky path toward sale
ExxonMobil has faced no shortage of obstacles in its attempt to unload the MPNU stake.
NNPC Ltd, formerly known as Nigerian National Petroleum Corp. (NNPC), sought earlier this year to block the sale, arguing that it had the right of first refusal to the equity stake on the basis of its status as the other shareholder in MPNU. It took the matter to court earlier this year and obtained an order putting a hold on the sale in June.
The case has also been taken to court by other parties. In late March, the government of Akwa Ibom state filed a counter-claim against Exx- onMobil in response to an ongoing case related to the revocation of certificates of occupancy. Akwa Ibom’s State Attorney-General and Com- missioner for Justice Essien Udom argued at the time that the US giant should not be allowed to proceed with the sale since the original suit, which concerns MPNU assets that may belong to Akwa Ibom, was still pending.
Meanwhile, Seplat Energy’s own plans for expansion have been held up by all the disputes. The Nigerian company had hoped to see its net production rise to about 146,000 boepd as a result of the acquisition, up from the 2020 level of 51,000 boepd.
Gaining a stake in MPNU would also boost the firm’s proven and probable (2P) reserves to 945mn boe, up by around 89%. ™
Komolafe has doubled down on his assertions that NUPRC is the only state entity authorised to approve or deny the deal
Quanten signs Soyo deal amid Angolan refining surge
A agreement has been signed on financing for the 100,000 bpd Soyo refinery, while significant progress is being made at two of Angola’s three other refining projects
THE US-based Quanten Consortium signed a deal this week with the Angola Private Invest- ment and Export Promotion Agency (AIPEX) for the development of a greenfield refinery at Soyo in the northern Zaire province.
This announcement comes as Angola works to build three refineries with a combined capac- ity of 360,000 barrels per day (bpd) and the 60,000-bpd Cabinda plant leading the way after a distillation tower was installed last month.
Soyo signing
According to a note shown to local media outlet Jornal de Angola, “the referred project is exter- nal (United States), and is budgeted at $3.5bn, providing for the creation of 900 direct jobs, of which 77% (700) are for nationals.”
While it was not clear from the statement, local Portuguese-language reporting of the story suggests that AIPEX will stump up funding for the 100,000-barrel per day (bpd) unit.
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