The Nigerian Minister of State for Petroleum Oil Sen. Heineken Lokpobiri has reiterated the commitment of present administration of President Bola Ahmed Tinubu in resolving all hiccups that are militating against the conclusion of Oilfield divestment deal between ExxonMobil and Seplat. He honourable Minister pledged this commitment recently via his X handle which is formerly twitter with emphasis on the capability and focus driven agenda of the current administration not leaving any stone unturned in its present reforms across the energy sector; especially in its pursuit of ramping up the nation’s daily crude oil production level.
“We remain dedicated to the Renewed Hope reforms in the energy sector, driven by Mr. President’s stir with a focus to making Nigeria’s oil and gas sector globally competitive by focusing on tax incentives, local content compliance, and reducing contracting costs and timelines.
“I emphasized on this when I joined the Executives of ExxonMobil led by President Liam Mallon, on a courtesy visit to President Bola Ahmed Tinubu at the State House Abuja, discussing critical issues concerning our petroleum sector, and I had been directed by Mr President to sort out the issues of divestment between ExxonMobil and Seplat, prior to now,” The Minister of State for Petroleum Oil, Mr Lokpobiri stated
The Petroleum Minister of State further disclosed that the resolution is already at the advance stage and was optimistic with the unalloyed mandate given to him by the president that in no time soon all hurdles delaying the completion of the said divestment will be dismantled.
“We have advanced in stage on the settlement of all issues between the oil giants and hope to finalize that in the shortest possible time. On the issue of decommissioning, I hint the fact that the PIA has been a guiding framework for the Ministry in handling it and issues on abandonment with respect to global best practices,” He said
In the same vein, there are palpable indications that the Minister’s utmost pledge for timely resolution of divestment deal is coming faster than expected. This is following the signing of Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. on the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.
The above signing settlement agreement has now vacated the caveat imposed by the Nigeria Federal Government on acquisition of ExxonMobil shallow oil wells by Seplat Energy. Although Exxon Mobil and Seplat have been optimistic that Nigerian governments will eventually approval the stalled sale of its $1.28 billion shallow-water production assets in Nigeria.
ExxonMobil Nigeria and nations indigenous energy company Seplat have in February, 2022 reached an asset sale agreement that subsequently transferred ExxonMobil’s offshore shallow asset to Seplat in a $1.28 billion acquisition deal.ExxonMobil and Seplat are e xpected to operate the unit’s oil licenses in supporting Nigeria meet its OPEC production quota in the short term as well as accelerate the development of gas resources in the area.
In separate press release made available by Seplat and ExxonMobil in February stated that Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary Seplat Energy Offshore Limited had entered an agreement to buy the entire share capital of ExxonMobil’s Nigerian offshore shallow water business which is 40 per cent stake in four oil mining licenses to Seplat at a whopping cost of $1.28 billion, plus a further consideration of up to $300 million based on the oil price and the average production of the unit, Mobil Producing Nigeria Unlimited, over a five-year period.
The above transaction was sequel by a legal action instituted by Nigeria’s petroleum regulator which the eventual court judgement was in favor of the NNPC Ltd. In the law suit, Nigerian National Petroleum Corporation NNPC was granted a temporarily court order blocking ExxonMobil Corp. from selling assets in the country to Seplat Energy Plc.
