Nigeria’s NUPRC Reveals Proposal to Divest 26 Oil Blocks to Indigenous Companies

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that International Oil Companies (IOCs) have proposed to divest 26 oil blocks to indigenous companies, containing an estimated 8.211 million barrels of oil reserves.

Speaking at the Industry Dialogue on IOCs Divestment of Oil and Gas Assets in Abuja on Friday, Mr. Gbenga Komolafe, the Chief Executive of NUPRC, stated that the commission had engaged two leading global oil and gas decommissioning consultants to conduct due diligence on the proposed divestments.

Komolafe highlighted that the proposed blocks held substantial hydrocarbon resources, including 8.2 million barrels of oil, 2,699 million barrels of condensate, 44,110 billion cubic feet of associated gas, and 46,604 billion cubic feet of non-associated gas. He emphasized that these assets could significantly contribute to the nation’s hydrocarbon reserves.

Furthermore, Komolafe outlined that the consultants, including S&P Global Commodity Insights (SPGCI) and Boston Consulting Group (BCG), would assist in defining end-of-field life and abandonment legacy liabilities, managing operational risks, and benchmarking best practices for asset sales.

Enorense Amadasu, the Executive Commissioner for Development & Production at NUPRC, provided an overview of the divestments, detailing the framework, options, and objectives. The Commission’s Secretary and Legal Adviser, Mrs. Olayemi Anyanechi, explained the two options for divestments and their implications.

Osagie Okunbor, Chairman of the Oil Producers Trade Section (OPTS), and Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG), commended NUPRC for its transparency and clear options in the divestment process.

Representatives from Equinor, Seplat, Agip, and other parties also praised the commission’s efforts and clarity, pledging to provide feedback for further engagement.


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