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ExxonMobil renews 2 deep-water assets in Nigeria

by Radarr Africa
written by Radarr Africa

ExxonMobil, one of the world’s oil majors has renewed two deep-water leases in Nigeria for 20 years, among the first permits granted under the country’s new oil and gas law.

The U.S. energy giant extended its rights over two oil blocks at a ceremony on Friday in Abuja. It also renewed production-sharing contracts with the Nigerian National Petroleum Company, Limited(NNPC).

“We are pleased to announce the renewals of our OMLs 133 (Erha) and 138 (Usan) deepwater leases for a further 20–year period. This includes extensions of Production Sharing Contracts with our partner NNPC Limited

The permits for the so-called Oil Mining Leases 133 and 138 were due to expire in 2026 and 2027, but were renewed early under sweeping legislation passed last year known as the Petroleum Industry Act. The licenses contain deep-water fields from which the Nigerian government is eager to extract more oil and gas.

“These extensions enable us and our partners to unlock the potential value in these OMLs and to bring forward additional investment,” ExxonMobil said.

ALSO READ: ‘Tax the rich, increase salaries by 50%’, NLC writes to the Federal government of Nigeria

Three other deep-water leases were renewed at the same ceremony in “a major step” toward boosting production, the NNPC said on its Twitter account.

Nigeria’s oil production output has been declining consistently over the past 18 months, with the government blaming rampant theft from the onshore pipelines that crisscross the Niger Delta.

Other companies with interests in the five extended licenses and production-sharing contracts include Chevron Corp., Equinor ASA, Total Energies SE, Shell Plc and Cnooc Lt.

Source: Leadership

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AfricaAFRICA NEWSBusinessEnergyNewsNigeriaOil & GasWestern Africa

Seplat denies ExxonMobil deal cancellation, says they have not received notification

by Radarr Africa
written by Radarr Africa

Seplat Energy, on Thursday, said it had not received any official notification from the Federal Government of Nigeria reversing its proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited.

The company also said it was seeking clarification from relevant authorities regarding the claims that the President, Major General Muhammadu Buhari (retd.), who doubles as Minister of Petroleum Resources, had withdrawn his ministerial approval for the deal.

“Seplat Energy has become aware of a news report claiming that ministerial approval of the company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited has been withdrawn,” the oil firm stated in a statement issued by its Chief Financial Officer, Emeka Onwuka.

It added, “Seplat Energy has received no official notification of such a decision and is seeking clarification from the relevant authorities.”

The move puts the Presidency on the side of the Nigerian National Petroleum Company Limited which had earlier declined the $1.3bn transaction.

A statement by the Special Adviser to the President on Media and Publicity, Femi Adesina, had announced on Monday that Buhari consented to the acquisition of Exxon Mobil shares by Seplat Energy.

According to the Presidency, Buhari authorised the move in his capacity as Minister of Petroleum Resources as a way to attract Foreign Direct Investment to the country.

This was, however, contested by the Nigerian Upstream Petroleum Regulatory Commission, as the Chief Executive, NUPRC, Gbenga Komolafe, said the regulator would not and did not endorse the transaction.

Reacting to the development on Wednesday, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, stated that Buhari had reversed the decision and that the misunderstanding was because the “agencies involved in (the) decision had not coordinated well among themselves.”

ALSO READ: Buhari reverses approval of Seplat’s acquisition of ExxonMobil asset

Responding to claims on the reversal of ministerial approval, Seplat stated on Thursday that it had not received any official notification on the decision.

The oil firm, however, noted that it “will continue to work with all parties to achieve a successful outcome to the proposed acquisition and will provide an update in due course.”

It said the “announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).”

Source: Punch

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AfricaAFRICA NEWSEnergyNewsNigeriaOil & GasWestern Africa

Buhari reverses approval of Seplat’s acquisition of ExxonMobil asset

by Radarr Africa
written by Radarr Africa

Shortly after President Muhammadu Buhari authorised the acquisition of ExxonMobil Corporation assets by Seplat Energy Plc, he has made a U-turn on the deal.

Buhari had on Monday approved the acquisition as announced in a statement signed by presidential spokesperson, Garba Shehu.

However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) later expressed its displeasure at the approval, describing it as a regulatory matter.

On Wednesday, Shehu said President Buhari had reversed his authorisation, choosing to support the position of the NUPRC.

According to the media aide, the confusion trailing the deal was due to the non-coordination among the various agencies of government involved.

“It has become clear that the various agencies involved in decision had not coordinated well among themselves and having looked at all of the facts with all of the ramifications, the president decided the position of the regulator is to be supported,” Shehu told Premium Times.

ALSO READ: Buhari approves Seplat Energy acquisition of $ 1.283bn Mobil assets

But when asked by TheCable whether there would be proper communication over the issue, the presidential spokesman said, “I have no statement to issue”.

In May, the commission declined to approve the proposed acquisition due to what it described as overriding national interest.

Owing to the development, Seplat Energy in a corporate filing on Wednesday, said it followed due process in the acquisition of the assets.

Source: Channels

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AfricaAFRICA NEWSBusinessEnergyNewsNigeriaOil & GasWestern Africa

NUPRC rejects sale of ExxonMobil’s assets as approved by Buhari

by Radarr Africa
written by Radarr Africa

The Nigerian Upstream Petroleum Regulatory Commission(NUPRC) has rejected the sale of ExxonMobil’s assets to Seplat Energy as approved by President Muhammadu Buhari.

Recall that the President had in a statement on Monday revealed that President Buhari had approved the sale.

According to the statement, Buhari had granted assent to the deal in which Seplat will acquire a 40 per cent stake of ExxonMobil oil assets around Akwa Ibom State.

The statement cited the Petroleum Industry Act, 2021 as an incentive to drive Foreign Direct Investment and raise oil production from the assets.

ALSO READ: Buhari approves Seplat Energy acquisition of $ 1.283bn Mobil assets

But reacting to there development, the NUPRC’s Chief Executive Officer, Engr. Gbenga Komolafe, in a statement on Monday, said the Commission in line with the provisions of the PIA, 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.

Komolafe said: “As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard.

“As such the Commission further affirms that the status quo remains.

“The Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector.”

Source: The Eagle Online

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AfricaEnergyNigeriaOil & GasWestern Africa

Seplat Energy announces the resignation of Arunma Oteh as non-executive Director

by Radarr Africa
written by Radarr Africa

Seplat Energy on Thursday in a filing to the capital market, Nigerian Exchange Limited (NGX), announced the resignation of Arunma Oteh as a non-executive Director in the company.

Arunma Oteh, prior to her appointment was a Treasurer and Vice President of the World Bank. She was appointed in August 2020, but will be retiring from her position effective December 31, 2022 as disclosed in the announcement.

Her resignation comes amid a setback faced by Seplat in the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil. The deal is being blocked by the Nigerian government.

The Nigerian National Petroleum Company (NNPC) Limited plans to takeover the asset of MPNU, which is the shallow water business (crude field) jointly owned by the government corporation and ExxonMobil.

ALSO READ: Addax employees embark on strike over anti-labour practices

Despite Seplat stating that the interest of the NNPC doesn’t affect the acquisition deal it has with ExxonMobil, NNPC has gone to court to prevent the transfer of the shares, asset or property of MPNU to Seplat.

Meanwhile, speaking on the resignation of Oteh, Chairman of Seplat Energy, Basil Omiyi, said, “On behalf of the Board, Management and Staff, I would like to thank Ms. Oteh, OON for her immense contributions, strategic drive and the wealth of experience she brought to the Board especially in matters relating to corporate governance.”

He further stated, “Ms. Oteh demonstrated excellent commitment and passion about positioning Seplat Energy as a pacesetter in the global energy transition agenda. We wish her great success in her future endeavours.”

Source: Ripples Nigeria

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BusinessNigeriaOil & Gas

NNPC blocks Exxon Mobil’s asset sale to Seplat

by Radarr Africa
written by Radarr Africa

The Nigerian National Petroleum Company (NNPC) Limited has won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy Plc.

A judge in Abuja granted NNPC an “order of interim injunction” on July 6, 2022, barring Exxon “from completing any divestment” in a unit that ultimately operates four licenses in Nigeria, Blomberg reported on Monday.

The Lagos-based producer, Seplat, had agreed to acquire the United States oil major’s subsidiary for at least $1.28bn in February.

The report stated that NNPC wished to block the transaction and to take over the permits itself.

Bloomberg stated that NNPC sued Mobil Producing Nigeria Unlimited on July 5, 2022, asking the Federal High Court either to order that a dispute had occurred between the parties over preemption rights, or to order them to take the matter to arbitration, quoting a statement from Seplat.

READ ALSO: IOCs to remit N400bn oil debt for July – NNPC

Seplat, which was not party to the lawsuit, said its deal with Exxon was “still valid” and the company “remains confident that the matter will be brought to a proper conclusion in accordance with the law.”

A spokeswoman for Exxon declined to comment, according to Bloomberg, while a spokesman for the NNPC did not respond to a phone call and text message.

The acquisition would give Seplat additional production of about 95,000 barrels of oil equivalent a day from shallow-water assets that Exxon operated in a joint venture with NNPC.

For more than a decade, international oil companies active in Nigeria have been offloading large parts of their portfolio across the country to domestic players, a trend that has recently accelerated.

An order from a Nigerian court had also forced Shell Plc to pause its plans to sell all off its remaining onshore permits in Nigeria.

Source: Punch

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Global NewsOil & Gas

ExxonMobil boss wants carbon price to double

by Radarr Africa
written by Radarr Africa

The Chief Executive Officer of ExxonMobil, Darren Woods, has called for an increment in Carbon price, to enable more investors come into the market, insinuating that the current $50 per tonne is not enough.

Companies trade carbon dioxide after they capture (and store) it from fossil fuels in industrial plant or from production site of businesses like cement. The process is called carbon capture and storage (CCS).

After the storage, companies convert it into liquidity, then use pipelines to transport the product. Oil firms often use the product by injecting it into oil and gas reservoirs to enhance extraction or for oil recovery.

READ ALSO: Twitter stock drops by 4% after report says Elon Musk’s deal to buy company is in danger

Woods said the price of the commodity needs to rise to about $100, as the technology used to capture and store the carbon dioxide is the holy grail. He said by 2050, the market value of the carbon market will be $4 trillion.

He explained that should the cost surge, innovations would emerge in form of technology in the clean energy market, “if you can overcome some of those technology hurdles, get your cost down, you’ve got a technology then that can address this in a very cost-efficient way”, he was quoted in a Oilprice report on Thursday.

Source: Ripples Nigeria

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