SAM IKEOTUONYE, with agency report
Lagos — The Nigerian government says it is optimistic that ExxonMobil’s plan to sell part of its Nigerian assets to Seplat Energy can move forward.
ExxonMobil, in February 2022, disclosed plans to sell its equity in its shallow-water affiliate, Mobil Producing Nigeria Unlimited, to Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary Seplat Energy Offshore Limited.
But, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, the oil industry regulator, refused to approve the $1.28 billion sale.
Some industry watchers see the deal as key to getting much-needed investment into Nigeria’s oil and gas sector.
The Chief Executive Officer, CEO, of NUPRC, Gbenga Komolafe, now says he is “very optimistic” the deal can move forward, according to Reuters. .
“We are very optimistic that parties to the transaction will go back, look at the position of the regulator and come back by abiding by the provisions of Nigerian laws and the right thing will be done,” Komolafe told Reuters on the sidelines of Africa Oil Week in Cape Town on Wednesday.
The NUPRC boss stated that once ExxonMobil had made proper agreements with its joint-venture partners in the assets, “the regulator will do what it needs to”.
Seplat CEO Roger Brown was also quoted as saying he was “hopeful” the deal could be concluded this year”.
“We have very good relationships with the regulator and that is why it takes time and the NNPC is a partner to us and we want to respect the partnership …Now we are starting to get to that crux point to try and resolve the issue,” he said.
ExxonMobil did not immediately comment.
State oil company, Nigerian National Petroleum Company, NNPC, had opposed the sale, arguing it had pre-emptive rights to the assets. NNPC has not publicly commented on whether it made an offer to buy the assets.
Nigeria, Africa’s largest oil exporter, relies on petroleum for 90% of its foreign exchange and half its budget. But production has declined in recent years due to underinvestment and theft. Several international oil majors are looking to sell onshore assets, but those deals have run into legal and regulatory hurdles.
In another development, the NNPC last month faulted the planned sale of the onshore oil assets of a subsidiary of Italy’s Eni to local company Oando. NNPC said the Eni subsidiary, Nigerian Agip Oil Company, NAOC, did not obtain its consent prior to announcing the deal, a failure it said could have breached terms of a joint operating agreement.
This article was originally posted at sweetcrudereports.com
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