Economy
NUPRC Completes Regulatory Approval for Eni, Equinor Divestment Deals
By Adedapo Adesanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday announced the completion of all regulatory processes for the assets sale between Eni’s Nigerian Agip Oil Company (NAOC) as well as that between Equinor and Chappal.
The chief executive of NUPRC, Mr Gbenga Komolafe, disclosed this on the final day of the NOG Energy Week in Abuja and said the signing ceremonies for the two concluded deals would come up in a few days.
The regulator also stated that documents submitted by Shell Petroleum Development Company (SPDC) in its $2.4 billion deal were undergoing due diligence by the commission, pending approval.
On the Mobil Producing Nigeria (MPN) and Seplat $2.4 billion oil assets’ sale, Mr Komolafe, explained that the latter opted for ministerial consent before finalising pending issues with the commission.
In November last year, the Norwegian state-owned multinational energy company, Equinor, said it had inked a deal with Nigerian-owned Chappal Energies, allowing the latter to acquire its business in Africa’s biggest oil producer.
The transaction included Equinor Nigeria Energy Company’s 20.2 per cent stake in Chevron-operated Agbami, the country’s largest deep-water oilfields. Equinor holds a 53.9 per cent interest in oil & gas lease OMLs 128 and 129.
Also, in August 2023, Oando Plc reached an agreement with Eni on the acquisition of a 100 per cent stake in its subsidiary, Agip.
The transaction is expected to expand Oando’s current participating interests in oil mining leases (OMLs) 60, 61, 62, and 63, from 20 per cent to 40 per cent.
Mr Komolafe added, “As a matter of fact, I find it necessary to announce here this afternoon, how we are always very willing to inform the industry about the status of our activities. So, as regards the status of the four divestments, the first, the Oando divestment, I’m happy to announce that the exercise has been completed, as I speak to you, and the signing ceremony will be conducted in a few days.
“In a likewise manner, the divestment involving Equinor and Chappal is equally completed and the signing ceremony will be conducted in the coming days, equally. So, we can celebrate that.
“As regards the divestment of SPDC to the group for renaissance, the status is that the regulator has received the documentation and the transaction is currently underway in the industry. So, we hope that it will be gradually positioned to be announced in a few months.
“Then, regarding the divestment, the transaction involving Mobil and Seplat, currently, the company has expressed commitment to proceed to apply for ministerial consent to conclude the documentation to the commission.
“So, the position I’m expressing here is that the NUPRC, as the regulator, as we speak, is yet to receive the documentation for due diligence in respect of Mobil and Seplat transaction.”
He added that whereas Nigeria’s oil rig count fell to as low as eight in 2021, it had recently soared to as many as 34 as of June 24, underscoring the increasing activities in the upstream sector.
On the commission’s high-impact achievements, the NUPRC chief executive stated that it conducted an industry-wide integrated study on the re-activation of shut-in strings in Nigeria to unlock 700,000 barrels per day while approvals were granted for well interventions and re-entry operations with the potential to develop greater than six million barrels of oil and five trillion cubic feet (TCF) of gas.
Komolafe added that NUPRC approved field development plans for additional production from four fields with a peak potential of circa 125 thousand barrels of oil per day.
By Adedapo Adesanya
Seplat Energy Plc will revive hundreds of Nigerian oil wells laying fallow after completing the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil.
The company said it aims to lift oil output to about 200,000 barrels a day, a move that will help boost Nigeria’s oil production levels, as it aims to reach 2 million barrels per day next year.
The transaction, according to Seplat, “is transformative for Seplat Energy, more than doubling production and positioning the company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.”
The completion of the Seplat-ExxonMobil deal has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; 5 gas processing facilities; and 3 export terminals.
Recall that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October approved the deal as part of a series of approvals, while it blocked Shell’s asset sale of up to $2.4 billion to the Renaissance consortium.
The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40 per cent operated interest in OML 67, 68, 70 and 104; 40 per cent operated interest in the Qua Iboe export terminal and the Yoho FSO; 51 per cent operated interest in the Bonny River Terminal (‘BRT’) NGL recovery plant; 9.6 per cent participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.
MPNU adds substantial reserves and production to Seplat Energy; 409 million barrels of oil equivalent (MMboe) 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd (thousand barrels of oil equivalent).
Business Post reports that Seplat will be part of the payment this year, and will defer some to next year,
Speaking on the transaction, the Chairman of Seplat Energy, Mr Udoma Udo Udoma commended President Bola Tinubu for supporting this transaction and appreciated the support and diligence of the various ministries and regulators for all the work to reach a successful conclusion.
“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.
“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the government, regulators, communities and our staff.”
On his part, the chief executive of Seplat Energy, Mr Roger Brown, described the acquisition as a major milestone, adding, “I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.
“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.
“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world-class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.
“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders”.
By Adedapo Adesanya
The National Pension Commission (PenCom) is projected to close the year with over N22 trillion in pension assets impacted by challenges like inflation and monetary policies.
This is according to PenCom Director-General, Mrs Omolola Oloworaran, at a press conference in Abuja on Thursday.
She said as of October 2024, the Contributory Pension Scheme (CPS) had 10.53 million registered contributors and pension fund assets worth N21.92 trillion.
Speaking at the conference-themed Tech-driven Transformation Shaping the Pension Landscape, which showcased PenCom’s strategic commitment to innovation, she said that the numbers reflected the agency’s unwavering commitment to fund safety, prudent management, and sustainable growth.
She explained that the pension environment was impacted by the wider economic challenges facing the country, noting that the sector battled multi-year high inflation, Naira devaluation, and the lingering effects of unorthodox monetary policies by the Central Bank of Nigeria (CBN).
Business Post reports that the apex bank hiked interest rates by 875 basis points this year alone to tackle persistent inflation which peaked at 33.8 per cent as of October.
She said that these challenges eroded the real value of pension funds and impacted contributors’ purchasing power.
“To address these issues, the commission has initiated a comprehensive review of its investment regulations.
“It is focusing on diversifying pension fund investments into inflation-protected instruments, alternative assets, and foreign currency-denominated investments.
“The goal is to safeguard contributor savings and ensure resilience against future economic volatility,” she said.
She restated the commission’s commitment to expanding pension coverage, particularly through the advanced micro-pension plan designed to encourage participation from the informal sector using technology.
“This initiative will make it easier for everyday Nigerians to save for retirement, aligning with our vision of inclusive growth and financial stability for all.
“The backlog in retirement benefits for retirees of the Federal Government’s Ministries, Departments, and Agencies (MDAs) will soon be settled.
“The federal government recently disbursed N44 billion under the 2024 budget to settle approved pension rights.
“We are collaborating with the Federal Government to institutionalise a sustainable solution to ensure retirees receive their benefits promptly, eliminating delays,” Mrs Oloworaran said.
She said that PenCom’s technology-driven transformation aimed to make the CPS more accessible, reliable, and sustainable.
“From data management to seamless contributions and regulatory supervision, we are paving the way for a future where the pension industry serves all Nigerians effectively,” she said,
Mrs Oloworaran also said that the e-application portal for pension clearance certificates has replaced the manual processes and enhanced the ease of doing business in the sector.
“Since its deployment, 38,528 pension clearance certificates have been issued. This initiative ensures compliance and secures the future of Nigerians working in organisations that interact with the government,” she said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Thursday, December 12 after it ended the trading session with no single price gainer or loser.
As a result, the market capitalisation remained unchanged at N1.055 trillion as the NASD Unlisted Security Index (NSI) followed the same route, remaining at 3,012.50 points like the previous trading session.
However, the activity chart witnessed changes as the volume of securities traded at the bourse went down by 92.5 per cent to 447,905 units from the 5.9 million units transacted a day earlier.
In the same vein, the value of securities bought and sold by investors declined by 86.6 per cent to N3.02 million from the N22.5 million recorded in the preceding trading day.
But the number of deals carried out during the session remained unchanged at 21 deals, according to data obtained by Business Post.
When trading activities ended for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc was in third place with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
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