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FG Set to Sell Shell Assets, Lists Criteria

By Adaobi Rhema Oguejiofor

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed that the assets and liabilities of Shell Petroleum Development Company of Nigeria Limited (SPDC) are available for sale to the most qualified investor.

The Chief Executive of NUPRC, Gbenga Komolafe, announced this at a due diligence meeting with potential investors and other stakeholders on Monday in Abuja.

Komolafe stated that the goal of the due diligence meeting was to identify a successor who not only possesses the required financial resources but also demonstrates the technical expertise to responsibly manage the assets throughout their lifecycle.

He said that the assets being considered have an estimated total reserve of about 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.

Further noting that the Commission is committed to free entry, free exit business principle aimed at encouraging investors in the sector, the NUPRC Boss also added that the Commission had developed a Divestment Framework consisting of seven cardinal pillars to guide the assessment of applications for Ministerial consent to the SPDC Divestment and other similar divestments.

The pillars according to Komolafe, include technical, financial and legal capacities, among others.