NUPRC to fasttrack divestments of SPDC assets to Renaissance 

As part of efforts to fast track the handover of participating interest held by the Shell Petroleum Development Company of Nigerian Limited (SPDC) in the SPDC JV Assets, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday flagged off due diligence workshop to discuss and work together on the proposed divestment to Renaissance Africa Energy Company Limited (Renaissance).

The assets controlled by SPDC have an estimated total reserve of 4.96 billion barrels of oil, 1.77 billion barrels of condensate, 28.16 trillion cubic feet of associated gas and 28.11 trillion cubic feet of non-associated gas. 

Engr. Gbenga Komolafe, the Commission Chief Executive (CCE), said the goal of the workshop is to identify a successor who not only possesses the requisite financial resources but also demonstrates the technical expertise to responsibly manage these assets throughout their lifecycle.

“This makes a significant contribution to the nation’s hydrocarbon resources. Additionally, these assets hold P3 reserves estimated at 2.85 billion barrels of oil, 850.85 million barrels of condensate, 11.3 trillion cubic feet of associated gas and 12.26 trillion cubic feet of Non-Associated Gas.

“Furthermore, we must ensure that the inherent environmental and end-of-life liabilities i.e. decommissioning liabilities, are accurately identified, and assigned to the party best equipped to bear the associated risks. 

“This necessitates a comprehensive understanding of regulatory requirements, industry best practices, and the unique challenges inherent in oil and gas operations”.

Komolafe further explained that the SPDC JV assets are currently operated by the SPDC on behalf of its Joint Venture (JV) partners namely NNPCL Limited and Total Upstream Nigeria Limited, Nigeria Agip Oil Company and SPDC. The SPDC JV OMLs were originally awarded as Oil Exploration Licence -1(OEL-1) on 1 January 1949 covering the whole of southern Nigeria and Cameroon. Ultimately, the assets were converted to OMLs on 1 April 1962 and subsequently renewed in 2014 and 2018 for 20 years. To date, the assets have achieved a cumulative production of 5.35 billion barrels of crude oil, 165. 57 million barrels of condensate, 9.51 trillion cubic feet of Associated Gas, and 3.75 trillion cubic feet of Non-Associated Gas, contributing immensely to Nigeria’s crude and condensate output.

“Permit me to emphasize that the NUPRC is committed to free entry, free exit business principles aimed at encouraging investors in the sector. We understand the importance of providing a stable regulatory framework that instills confidence and encourages investment,” he said.  

Also speaking, Wessel de Haas, the General Manager SPDC Assets and Deputy Managing Director, the Shell Petroleum Development Company of Nigeria Limited, expressed hope that the workshop would provide necessary clarifications for the divestments.