Abuja, Aug. 9 (BNA): Nigeria’s Petroleum Regulatory Authority said on Tuesday it stood by its refusal to approve ExxonMobil’s $1.28 billion sale of its shares in its Nigerian unit to SEPLAT.LG after President Muhammadu Buhari approved the deal.
Under the new petroleum law passed last year, the Minister of Petroleum can only give approval for such a takeover on the recommendation of the commission, said Ginja Komulaf, Chairman of the Nigerian Petroleum Regulatory Commission. Reuters reported that Bukhari is also the Minister of Petroleum.
“The issue at hand is purely a regulatory issue and the Commission had earlier reported reviewing the ministerial approval of ExxonMobil in this regard. As such, the Commission further confirms that the status quo remains,” the panel said.
Earlier this year, NUPRC refused to approve the deal without giving public reasons.
On Monday, Bukhari approved the deal.
A presidential source told Reuters that Buhari will meet Oil Minister Sylva Timimbri on Tuesday about the issue. The source added that the deadline is expected to issue a statement after the meeting.
The sale was also opposed by state-owned NNPC Limited, which says it has protective rights over the assets.
Under the Petroleum Industry Law, which was passed last year after nearly two decades in business, a petroleum exploration license holder cannot “transfer his license or any right, authority or interest without the authority’s prior written approval.”
The law also states that “in the event that the Minister’s approval is granted in relation to the transfer request, the Commission shall promptly register the transfer in the appropriate registry.”
It is not clear whether the approval of the Minister of Petroleum can override the Commission’s objection.
Major oil companies operating in Nigeria, including Shell and TotalEnergies, want to exit shallow water operations, citing concern about disruptions by local communities and a focus on deepwater drilling.
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