Wednesday, 06 November, 2024

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ExxonMobil Keeps Mum Over NNPC Cancellation Of Seplat Asset Sale Deal


ExxonMobil Corporation, has declined to comment on report which quoted the Nigerian National Petroleum Company (NNPC) Ltd as notifying it of its intention to exercise a Right of Pre-emption on the planned sale of its entire asset in Nigeria’s onshore and shallow waters.

LEADERSHIP reports that ExxonMobil last Friday, announced that it had reached an agreement to sell its equity interest in its shallow-water business, Mobil Producing Nigeria Unlimited, to Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary, Seplat Energy Offshore Limited.

However, the alleged NNPC’s decision,  effectively means the Sales Agreement between SEPLAT and ExxonMobil will not be actualised.

Media and Communications, MPNU, Oge Udeagha, declined comment on the development when our Correspondent sought his company’s reaction to the issue.

Similarly, industry sources disclosed that Seplat may not have been notified of this development by NNPC, expecting the whole issue to become clearer by Monday when possibly all parties may have been duly notified.

ExxonMobil had, however, said it would retain its deepwater assets, adding that, the sale of MPNU supported the company’s investment strategy and Nigeria’s efforts to enhance industry participation.

The president, ExxonMobil Upstream Oil and Gas, Liam Mallon, had earlier said: “this sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.

“We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximise the value from our deepwater operations.”

The oil firm said, when finalised, the sale would include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which hold a 40 per cent stake in four oil mining licences.

According to , the licences include more than 90 shallow-water and onshore platforms and 300 producing wells.

According to sources in NNPC Limited,  which is the major shareholder in the Joint Ventures with ExxonMobil, it may have exercised its right of first refusal on the assets as part of a new era which will focus solely on building the long term profitability of the NNPC Ltd.

According to reports, NNPC, has formerly conveyed its decision to exercise its rights and match any offer by interested parties for the assets following ExxonMobil decision to receive bids for their share of the JV.

Earlier, Seplat Energy subsequently put forward a winning bid for the assets and reached an Agreement with ExxonMobil.

Right of pre-emption is a legal right to parties in a joint venture to be the first to be considered for any planned sale or takeover of assets in the JVs if either parties choose to trade them off.

In a letter reportedly by signed by the group managing director, NNPC, Mele Kyari, and addressed to ExxonMobil, the NNPC reiterated its resolve to take over the ExxonMobil’s share of the assets.

Credit: Leadership

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