Nigeria: NNPC, Exxonmobil Agree On $1.28bn Divestment As Deal Nears Completion

30 May 2024
This Day (Lagos)
By Emmanuel Addeh

Abuja — Finally, the Nigerian National Petroleum Company Limited (NNPC) and ExxonMobil Thursday agreed on a settlement deal for the planned $1.28 billion assets' divestment deal by the oil major.

The NNPC announced on its X page that the agreement will pave the way for the International Oil Company (IOC) to sell off its 100 per cent interest to Seplat Energies after the settlement.

"Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. signed regarding the proposed divestment of a 100 per cent interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited," it stated.

The consummation of the agreement had been delayed since February 2022, after the NNPC first announced that it had a right of first refusal to the assets that were up for divestment.

Also, the industry regulator, the Nigerian Upstream Petroleum Regulatory Company Limited (NUPRC) had raised issues with the process, leading to the announcement, insisting that due process must be followed.

The NUPRC recently released a new framework for present and future divestments by operators in the Nigerian oil industry.

The Minister of State, Petroleum (Oil), Senator Heineken Lokpobiri, has repeatedly assured that once the documents get to his table , he will not waste an additional day before signing them to allow the completion of the deal that has been stalled for over two years.

Details later...

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