Shane Harris, Managing Director of ExxonMobil Nigeria, has dismissed rumors of the company’s departure from Nigeria, emphasizing ongoing investment initiatives despite the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.
During a meeting with the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, in Abuja, Harris highlighted ExxonMobil’s continued commitment to Nigeria’s oil and gas sector. This was confirmed by Nneamaka Okafor, the Special Assistant on Media and Communications to the petroleum minister, in a statement issued on Monday.
“Mr. Harris shared insights on significant new investments ExxonMobil is making in Nigeria’s energy sector,” the statement read. “He expressed confidence in the strengthened relationship with the Nigerian government, assuring that ExxonMobil has no plans to exit the country.”
Harris stated, “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.”
Minister Lokpobiri reaffirmed the Federal Government’s dedication to boosting production and fostering a supportive environment for energy sector investors. He emphasized the ministry’s commitment to collaborating with international oil companies and sharing innovative ideas to maintain investor confidence.
“ExxonMobil’s planned investments are commendable and greatly appreciated. This renewed relationship aligns perfectly with our nation’s energy sector objectives,” Lokpobiri stated.
The meeting also discussed the ministry’s support for both international and independent oil operators, with Lokpobiri assuring ExxonMobil of the government’s backing.
On May 31, 2024, The PUNCH reported that Nigeria could add 480,000 barrels to its daily crude oil output as the Nigerian National Petroleum Company Limited (NNPC) and ExxonMobil worked towards resolving the dispute over the asset sale to Seplat Energy. The report noted that NNPC had signed a settlement agreement with ExxonMobil over the proposed divestment of Mobil Producing Nigeria Unlimited to Seplat.
President Bola Tinubu had previously intervened in the dispute between NNPC and ExxonMobil, which had stalled the asset sale to Seplat. Minister Lokpobiri recently highlighted that Nigeria had lost approximately $30 billion in the past two and a half years due to the failed divestment, with a daily loss of about 480,000 barrels of crude oil.
The ExxonMobil-Seplat $1.6 billion sales agreement announced in 2022 was halted by the Nigerian Upstream Petroleum Regulatory Commission’s letter, asserting NNPC’s right of pre-emption. After nearly two years of litigation, a resolution appears imminent.
Right of pre-emption grants joint venture partners the first opportunity to purchase or take over assets offered for sale by the other party. NNPC objected to the sale of ExxonMobil’s equity to Seplat and exercised its pre-emption rights, reportedly offering above $1.6 billion to ExxonMobil.
With ongoing negotiations and government support, both parties aim to resolve the crisis, potentially boosting Nigeria’s crude oil production and securing substantial investments in the energy sector.
