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FG- Imo: :Regulatory Oversight of The State Electricity Market Is Now Underr ISERC

By Favour Ifeoluwa & Akinola Ajibade  The Federal Government yesterday( Monday) announced the transfer of Regulatory Oversight of the Electricity Market in Imo State to the state electricity regulatory commission, otherwise known as (ISERC). In a statement issued by the Nigerian Electricity Regulatory Common( NERC), the development is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended), reiterating that all transfers envisaged by this order shall be completed by 31 December 2024. According to the Commission,the transfer Order’s provisions include: “Direct Enugu Electricity Distribution Company (EEDC) to incorporate a subsidiary (EEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Imo State from EEDC, and that EEDC shall complete the incorporation of EEDC SubCo within 60 days from 27th June 2024. The subcompany shall apply for and obtain licence for the in
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Oando/Agip Deal Will Cause Legal Implications in Future- NNPCL

Nigerian National Oil Company 


By Favour & Akinola Ajibade


The Nigerian National Petroleum Commission Limited ( NNPC) has kicked against the  acquisition of assets of Agip Oil Company by Oando Oil Limited.

This happens as Oando recently struck a deal to acquire NAOC's interest in Oil Mining Leases( OMLs 60,621,62 and 63, a development, which has generated wide discussions in the industry.

Recall that similar scenario played  out between Seplat Energy and ExxonMobil months ago, as stakeholders were divided on the decision by Seplat Oil to buy a sizeable interest of Exxon Mobil in Nigeria. 

While expressing  discontent on the issue of Oando buying interest of ExxonMobil in Nigeria, NNPCL in a letter to both the Manaing Director of Nigerian Agip Oil Company and the Chief Operating Officer of Oando Oil Limited (OOL) said the deal between the two companies was not good enough, as it is going to have huge legal and contractual implication in future. 

"Our attention has been drawn to various reports circulating on different media platforms concerning an alleged divestment of NAOC participating in the OML mentioned above to Oando Oil Limited. A duly signed press statement allegedly emanating from OOL dated 4th September 2023 affirms that NAOC has assigned its entire 20 percent participating interest in the said OMLs to OOL.

“While we are yet to confirm the authenticity of the purported divestment, we would like you to note that the purported divestment, if true, would have the following far-reaching contractual/ legal implications in relation to the Joint Operating Agreement (JOA) dated July 1991 governing the operations of NAOC/NEPL/OOL joint venture.

The NNPCL through the letter with reference no E and P /MD/0623 dated 4th of September, titled “Purported Divestment of Eni Shares to Oando Oil Limited” and addressed to the managing director of  Nigerian Agip Oil Company (NAOC), drew the attention of the company to the fact that Clause 19.11 of the JOA provides that “no party may  assign or transfer  any interest or any part  therefore without prior written consent of the other parties, which  consent shall not be unreasonably  withheld”

The letter was signed on behalf of NNPC EandP Limited by Ali Muhammed Zarah, its managing director. The Group Chief Executive Officer of NNPCL, Executive Vice President of Upstream and the Chief Operating Officer of Oando Oil Limited were copied.

“It is imperative for you to know that failure for you to obtain NEPL’s prior written consent and approval with regards to the alleged transfer of your interest in the joint asset constitutes a grave breach of the terms of the JOA and NEPL’s reserves its right in relation to the said breach- including NEPL’s entitlement to invalidate the purported assignment to OOL

Please note that as holders of 60 percent participating interest in the NEPL/NAOC/ OOL JV, we are indeed concerned that the entire purported assignment was executed without due compliance with the terms of JOA.

“We expect that all parties to the JOA will comply and observe the terms of the JOA,” NNPCL stated

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