ABUJA, July 3 – The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced the approval of Eni’s proposal to divest its wholly-owned subsidiary, Nigerian Agip Oil Company (NAOC), to Oando PLC, marking a significant development in Nigeria’s oil and gas sector.

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During Nigeria’s Oil and Gas Week in Abuja, NUPRC CEO Gbenga Komolefe confirmed the completion of the NAOC-Oando divestment deal, with the signing ceremony scheduled imminently. The transaction includes NAOC’s stakes in four onshore blocks and various other assets, excluding its interest in the Shell Production Development Company Joint Venture (SPDC JV), which will remain with Eni.

Eni stated that it will maintain its presence in Nigeria through Nigerian Agip Exploration and Agip Energy and Natural Resources, focusing primarily on offshore operations.

Regarding the $1.2 billion ExxonMobil downstream assets sale to Seplat Energy, Komolafe disclosed that NUPRC is awaiting ministerial consent, despite progress made with a settlement agreement signed by Nigerian National Petroleum Company (NNPC) Limited.

International Oil Companies (IOCs) at the event advised the Nigerian government to prioritize competitive fiscal terms to attract more investment in the country’s oil and gas sector. They emphasized the need for fiscal terms that enhance Nigeria’s competitiveness globally, stressing the importance of predictability and stability in investment frameworks.

The ongoing legal challenges and operational hurdles faced by oil majors in Nigeria, including theft, oil spills, community clashes, and exploration budget constraints, continue to impact the sector’s development.