In April 2024, the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC or the “the Commission”), pursuant to the provisions of the Petroleum Industry Act (PIA) 2021, introduced the Upstream Petroleum (Assignment of Interests) Regulations (“the Regulations”). These Regulations represent a significant development in Nigeria’s upstream petroleum sector, establishing a structured legal framework for the assignment, transfer, novation, and creation of interests in petroleum licenses and leases.
The Regulations provide a comprehensive mechanism for ensuring that any assignment, novation, or transfer of interests in upstream petroleum assets, including the creation and enforcement of security interests, follows a clearly defined process.
By setting out these detailed procedural requirements, the Commission seeks to promote transparency, consistency, and accountability in the management of upstream petroleum assets. As stakeholders navigate the new regulatory landscape, it is essential to fully understand the scope and application of these provisions to ensure compliance and mitigate legal risks.