President Bola Tinubu has reaffirmed his commitment to resolving the divestment issues between ExxonMobil and the indigenous energy company, Seplat Energy.
This commitment was articulated in a statement by the president’s spokesperson, Ajuri Ngelale, during a meeting with ExxonMobil President Liam Mallon and other executives at the State House in Abuja on Tuesday.
In February 2022, Seplat Energy announced plans to acquire Mobil Producing Nigeria Unlimited from ExxonMobil for $1.28 billion, as part of ExxonMobil’s divestment strategy in Nigeria.
However, the transaction has been stalled due to a court ruling obtained by the Nigerian National Petroleum Company Limited (NNPCL) that temporarily prevents ExxonMobil from selling its Nigerian assets to Seplat Energy.
On July 6, 2022, a judge in Abuja issued an “order of interim injunction” prohibiting ExxonMobil from finalizing any divestment of a subsidiary holding four licenses in Nigeria.
President Tinubu emphasized the federal government’s dedication to resolving the legal disputes between ExxonMobil and Seplat Energy.
The president praised ExxonMobil for its long-standing partnership in Nigeria’s development and urged the company to continue supporting his administration’s efforts.
“Nigeria is undergoing significant reforms, and we are carefully navigating leadership quarters to ensure a win-win situation for all parties and to attract more investments. We are pushing for closure on divestment issues, and I believe Seplat is open to this,” said President Tinubu.
Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), noted that President Tinubu has issued a clear directive to both him and NNPC GCEO Mele Kyari to address the divestment dispute.
“Mr. President has given a clear directive to resolve the divestment issue, and we are doing whatever we can to achieve that,” Lokpobiri stated.
Lokpobiri said the ministry is addressing decommissioning and abandonment in the oil industry in line with the Petroleum Industry Act and global best practices.
“The reforms driven by the three Executive Orders will ensure that companies operating in Nigeria have the best environment to continue their investments and that no company will seek to leave Nigeria,” he added.
On February 25, 2022, Seplat Energy Plc disclosed its plan to purchase all shares of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware, for $1.28 billion, involving ExxonMobil Nigeria’s offshore shallow water operations.
However, the NNPC invoked its Right of First Refusal regarding the sale of these assets, as specified in the Joint Operating Agreement of the Joint Venture.
In May 2022, the federal government declined to approve the transaction, citing overriding national interest among other reasons. The successful acquisition would enable Seplat to boost its production by approximately 95,000 barrels of oil equivalent per day from the shallow-water assets previously managed by ExxonMobil in partnership with NNPC.
