ExxonMobil says it has no plans to exit Nigeria

ExxonMobil Nigeria’s managing director, Shane Harris, has stated that the oil giant is not abandoning the country as some have speculated, especially in light of the company’s planned sale of Seplat Energy Offshore Limited a 100% stake in Mobil Producing Nigeria Unlimited.

At a meeting in Abuja with Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), Harris revealed that ExxonMobil is actively making fresh investments in Nigeria’s oil and gas industry.

This was revealed in a statement released in Abuja on Monday by Nneamaka Okafor, the petroleum minister’s Special Assistant on Media and Communications.

“During the meeting, Mr Harris hinted at significant new investments that ExxonMobil is injecting into Nigeria’s energy sector.

“He expressed confidence in the renewed relationship between ExxonMobil and the Nigerian government, assuring the government that the oil giant is not planning to leave Nigeria,” the statement read.

It further quoted the ExxonMobil boss as saying, “We are excited about the prospects these new investments bring. Our partnership with the Nigerian government is crucial for sustainable growth, and we look forward to continuing our collaboration as we have no plan to leave.”

Lokpobiri, for his part, reiterated the Federal Government’s resolve to boost output and create an atmosphere that is favorable for investors in the energy industry.

He highlighted the ministry’s focus on creating collaborations and sharing innovative ideas with international oil companies, stating that “we are dedicated to ramping up production and ensuring a supportive environment for all investors by doing everything possible to maintain investor confidence in our country.”

Lokpobiri praised the ExxonMobil team for their dedication to the Nigerian oil and gas industry, pointing out that it was a perfect fit with the goals of the country.

“ExxonMobil’s planned investments are commendable and greatly appreciated. This renewed relationship is a testament to the mutual goals we share for the future of our energy sector,” the minister stated.

The statement went on to say that the ministry’s assistance for foreign and independent oil operators was also discussed by both sides.

Assuring Harris of the government’s backing, Lokpobiri emphasized the significance of fostering an atmosphere that is prosperous for all parties involved.

On May 31, 2024, The PUNCH revealed that Nigeria may increase its daily production of crude oil by 480,000 barrels as a step toward settling the dispute between ExxonMobil and the Nigerian National Petroleum Company Limited regarding the latter’s asset transfer to Seplat Energy.

According to the article, NNPC verified that it had inked a settlement deal with ExxonMobil firms in Nigeria about the planned sale of Mobil Producing Nigeria Unlimited, a 100% stake, to Seplat Energy Offshore Limited.

This came after President Bola Tinubu declared he would step in to stop the sale of the properties to Seplat in the scandal involving NNPC and ExxonMobil.

According to Lokpobiri’s recent statement, Nigeria has suffered losses from the botched divestiture of approximately $30 billion over the last 2.5 years.

The minister voiced worries over Nigeria’s daily loss of roughly 480,000 barrels of crude oil as a result of the Seplat/ExxonMobil dispute.

Prior to the problem starting in 2022, he stated the asset was generating roughly 600,000bpd, and the country was losing millions of dollars every day.

As previously reported by The PUNCH, ExxonMobil and Seplat Energy announced in 2022 that they would be entering into a $1.6 billion sales agreement whereby Seplat will acquire all of ExxonMobil’s shares in the NNPC.

But just when everyone was expecting the sale to close, the Nigerian Upstream Petroleum Regulatory Commission sent ExxonMobil a letter on May 16, 2022, stating that NNPC had exercised its right of pre-emption first refusal on the properties, making the agreement unfeasible.

A joint venture’s power of pre-emption gives its partners the legal ability to be the first to be given consideration for any planned sales or acquisitions of the venture’s assets, should either party decide to sell them off.

Reportedly, NNPC refused to allow ExxonMobil’s stock to be sold to Seplat and demanded to exercise its right of first refusal. Shortly after, the corporation allegedly made an offer to ExxonMobil that exceeded $1.6 billion.

However, a resolution to the situation appears to be in sight following roughly two years of litigation.