CSO berates asset divestment guidelines of NUPRC

Ini Billie, Uyo

Civil Society Organisation, Policy Alert, has criticised the asset divestment guidelines of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) in the oil and gas industry.

Policy Alert, which works to promote fiscal and ecological justice in Niger Delta, described NUPRC’s divestment as “grossly inadequate” and “a tacit approval of the deals” and called for its suspension.

Executive Director of Policy Alert, Tijah Bolton-Akpan, faulted the framework released by the regulatory agency saying it amounted to an approval in disguise for shoddily arranged divestment deals, even though NUPRC intervention in the sector was commendable.

Akpan stated on Monday in Uyo that the guidelines failed to capture the obligation and capabilities of divesting and successor entities which addressed issues of community rights, ecological restoration, and decommissioning and abandonment.

He called for the suspension of the divestment until a comprehensive regulatory framework which addressed the legacy concerns was provided.

He urged NUPRC to adopt the civil society-driven national principles on Responsible Petroleum Industry Divestment as minimum criteria for the divestment deals.

“While the NUPRC deserves commendation for finally heeding calls to intervene in the regulatory uncertainty surrounding the recent wave of divestment in the sector, our position is that the released framework remains grossly inadequate and amounts to an approval in disguise for shoddily arranged divestment deals.

“The capacity requirements in the due diligence request list appear to focus mainly on current operational and financial competencies with little attention paid to the respective obligation and capabilities of divesting and successor entities to address residual issues, especially in the area of community rights, ecological restoration, and decommissioning and abandonment. This comes across as merely fulfilling all righteousness and even a tacit approval of the deals.

“We are also of the view that since these guidelines are coming rather late in the day considering that many divestment deals have already been completed over the last decade, they must have some retroactive bite.

“The type of guidelines we need at this time should be such that not only provide a guide for current and future divestment but can also be relied on to revisit past deals and ensure that they have complied with the best global practices.

“Having waited this long for the country’s upstream oil regulator to intervene in the commotion that has greeted divestment deals in the sector in the past few years, the least we expected was a document that would address many of the very touchy legacy concerns in a far-reaching manner.

“We therefore reiterate our call for a moratorium on all divestment until a comprehensive regulatory framework that addresses these concerns is provided.

“To this end, urge the regulator to adopt the civil society-driven National Principles on Responsible Petroleum Industry Divestment as minimum criteria for assessing the alignment of previous and current divestment deals with the national interest,” he stated.

Akpan called on President Bola Tinubu to delay the Minister’s Consent to the Assignment of Interest until substantive issues are addressed, saying it would ensure that International Oil Companies (IOCs) take responsibility and account for historical atrocities committed against the communities where they operated.

“We call on President Bola Tinubu to delay the Minister’s Consent to the Assignment of Interest until substantive issues are addressed. Granting such consent amid the current regulatory void would, in effect, amount to the Nigerian state offering the companies a getaway vehicle from the crime scene which their operations have turned the Niger Delta into,” he said.