The Nigerian government is making moves to resolve the dispute over the sale of ExxonMobil’s oil assets, which has been stuck for almost two years. The government recently met with Seplat Energy to find a solution to the prolonged disagreement. The Minister of State for Petroleum, Senator Heineken Lokpobiri, emphasized the need to quickly settle the matter in order to boost Nigeria’s crude oil production, which has been declining for over three years.
Under the proposed deal, Seplat has agreed to pay $1.3 billion for an Exxon unit that holds a 40% operating stake in four shallow-water licenses. If the transaction goes through, it will be one of the largest divestments in Nigerian history, following the trend of energy majors offloading unwanted assets.
The sale was initially endorsed by former President Muhammadu Buhari, but it faced opposition from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC). The NNPC, which holds 60% of the permits, claimed the right to acquire the blocks itself and sued Exxon in Abuja to block the deal with Seplat.
Seplat’s Chief Executive, Roger Brown, clarified that they are buying shares sold by US companies, emphasizing that it is a different type of acquisition. He also highlighted the potential value of natural gas in the blocks, which is a significant factor for Seplat as a major domestic supplier of fuel to Nigerian power plants.
In a separate development, officials of ExxonMobil visited President Bola Tinubu in Abuja, where the president pledged to ensure competition in the oil and gas industry in the country. Exxon Nigeria controls four oil mining leases and has a significant interest in export facilities and natural gas recovery plants.
Following the meeting with the Seplat team, Minister Lokpobiri described the discussions as fruitful and a significant step towards resolving the dispute. He expressed optimism about ending the impasse and enabling the nation to benefit from the assets acquisition.
In a proactive move to boost Nigeria’s oil output, the federal government has withdrawn court cases against Eni and Shell, aiming to remove obstacles to the country’s oil production.