15 March 2021
The Nigerian oil and gas sector regulator, the Department of Petroleum Resources (“DPR”), on September 1, 2020, issued the Guidelines and Procedures for Obtaining DPR Approval for Transfer of Licenses, Rights or Interests in the Downstream Sector of the Nigerian Oil and Gas Industry (”Guidelines and Procedures”).
The Guidelines and Procedures ﬂashed a beam of light over commercial transactions or projects that have the potential to alter the ownership or control of the License to Operate midstream and downstream assets.
Prior to the issuance of the Guidelines and Procedures, excepting interests in pipelines, transactions or projects involving the transfer of assets in the Nigerian midstream and downstream sectors were not subjected to such level of scrutiny by the DPR.
In our newsletter, we have highlighted the salient points to note in relation to the transfer of these assets.