President Bola Tinubu has directed the ministry of state for petroleum resources (Oil) and the Nigerian National Petroleum Company (NNPC) Limited to resolve the divestment issue delaying the Seplat and ExxonMobil deal.
Tinubu spoke on Tuesday during a meeting with a delegation
from ExxonMobil Upstream Company, led by Liam Mallon, its president, in Abuja.
In February 2022, Seplat announced an agreement to acquire
ExxonMobil’s 40 percent stake in Mobil Producing Nigeria Unlimited (MPNU) —
with the expectation that the transaction will be closed in the second half of
the year.
Nigerian Upstream Petroleum Regulatory Company (NUPRC), on
May 19, 2022, declined to approve Seplat’s proposed acquisition due to
“overriding national interest”.
Two months later, Seplat said the Nigerian National
Petroleum Company (NNPC) had won a court injunction restraining ExxonMobil from
selling its assets in Nigeria.
Following the push against the deal, former President
Muhammadu Buhari reversed his authorisation for the acquisition on August 10,
2022 — a few days after his initial approval.
Amid the delay in obtaining approval, Seplat extended the
SSPA for the acquisition of MPNU in May 2023 and May 2024.
At the meeting, Tinubu assured the delegation that the
federal government is committed to resolving the divestment issues between the
company and Seplat Energy, which are currently in litigation.
“We have been pushing for closure on divestment issues, and
I believe the other party, Seplat, is open to this,” Tinubu said.
“We are close enough to be fair and blunt with you, and we
are not afraid to hear from you on better options and recommendations for the
growth of the industry in Nigeria.”
The president commended the company for its commitment to
environmental protection in Nigeria, stating its efforts to reduce gas flaring.
He described ExxonMobil as a valuable partner in Nigeria’s
development over the decades and urged the company to continue supporting the
success of his administration.
Also, Heineken Lokpobiri, minister of petroleum resources
(Oil), said Tinubu has issued a clear directive to him and Mele Kyari,NNPC
group chief executive officer (GCEO) to resolve the divestment issue.
Lokpobiri said all necessary actions are being taken to
achieve this.
“Mr. President has given a clear directive to the NNPC GCEO
and I to resolve the issue of divestment, and we are doing whatever we can to
achieve that,” the minister said.
Regarding decommissioning and abandonment in the oil
industry, he said the ministry is addressing the issue in accordance with the
Petroleum Industry Act (PIA) and global best practices.
‘OIL, GAS REFORMS TO
MAKE NIGERIA GLOBALLY COMPETITIVE’
Tinubu said his oil and gas reforms will make Nigeria’s
petroleum sector globally competitive.
On February 28, Tinubu signed three executive orders as part
of the federal government’s plans to improve the investment climate in the
sector.
The three executive orders, which became effective on
February 28 are tax incentives, exemption, remission for oil and gas companies,
local content compliance requirements and reduction of contracting costs and
timelines.
The president said these reforms will ensure no oil company
encounters unnecessary challenges in the country.
“Nigeria is going
through a lot of reforms, and we have been navigating the leadership quarters
carefully to ensure that we achieve a win-win situation for all parties and
attract more investments,” Tinubu said.
Also, Lokpobiri said the reforms driven by the three
executive orders will ensure companies operating in Nigeria have the best
environment to continue making their investments and that no company will seek
to leave Nigeria.
ExxonMobil’s president expressed gratitude for the support
and assurances from the government and affirmed the company’s enduring
dedication to the country’s energy sector.
Mallon also praised the president for the reforms initiated
within the first year of his tenure.
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