The Nigeria Upstream Regulatory Commission ( NUPRC)  has unveiled new regulatory policy to all Licence and Lease holders on the requirement for submission of beneficial ownership of all oil and gas well in Nigeria. The recent notification was by the commission boss Engineer Gbenga Komolafe, FNSE via signed directive issued on 26th day of December 2022 as published on the commission’s official website. 

The Commission has required all entities or relevant persons that applying for or hold a participating interest in an exploration or production oil and gas license, lease or contract to provide information of their owners, including the identity or identities of their beneficial owner  or owners the level of ownership and details about how that ownership or control is exerted. Accordingly, all relevant persons are hereby required to provide the information of persons with significant control over them.

The commission identifies a person with significant control in means as any person:

1)A  person directly or indirectly holding at least 5% of the shares or interest in a relevant person;

 2)A Person directly or indirectly holding at least 5% of the voting rights in a relevant person;

 3) A Person directly or indirectly holding the right to appoint or remove a majority of the directors or partners in    a relevant person; otherwise having the right to exercise or actually exercising significant influence or control over a relevant person; or having the right to exercise, or actually exercising significant influence or control over the activities of a trust or firm, whether or not it is a legal entity, but would itself satisfy any of the first four conditions above if it were an individual.

 According to the commission, the above information shall be provided using the BENEFICIAL OWNERSHIP DECLARATION FORM as included in the notification of the press release published on its platform. NUPRC also stated that the current holders of participating interest in an exploration or production oil and gas license, lease or contract are required to fill the BENEFICIAL OWNERSHIP DECLARATION FORM and send to the Commission at bor@nuprc.gov.ng not later than seven (7) days from the date of this notification.

The commission also clarifies further that all future entities that will apply for participating interest in an exploration or production oil and gas license, lease or contract shall also be required to fill the BENEFICIAL OWNERSHIP DECLARATION FORM and submit with their application. Notice of change in persons in significant control over a relevant person shall be also provided by the relevant person within 30 days of the change using the CHANGE IN BENEFICIAL OWNERSHIP DECLARATION FORM.