ExxonMobil-Seplat: Tinubu Pressures Officials to Approve Stalled $1.6bn OMLs Deal

Nigeria’s President Bola Tinubu has directed the Ministry of State for Petroleum Resources (Oil) and the Nigerian National Petroleum Company (NNPC) Limited to clear the way for Seplat Energy to purchase certain ExxonMobil assets.

The $1.6 billion deal was initially announced during the Buhari-led administration but was delayed by political and legal processes surrounding the transition.

Recall that Seplat Energy signed an agreement in February 2022 to acquire significant stakes in ExxonMobil’s shallow-water OMLs 67, 68, 70, and 104, as well as major stakes in Qua Iboe terminal and Bonny River terminal, two of Nigeria’s largest export facilities.

Seplat also acquired a 51% interest in natural gas liquids recovery plants.

Three months later, the state-owned NNPC, led by Mele Kyari, filed a lawsuit against ExxonMobil, claiming that the company had violated its pre-emption rights.

This led to the Nigerian Upstream Petroleum Regulatory Commission denying approval of the acquisition on the grounds of “overriding national interest”.

However, following the end of the Buhari administration, Tinubu signed and declared three Executive Orders on oil and gas reforms, stating that it would make Nigeria’s petroleum sector globally competitive.

Tinubu made the remarks on Tuesday during a meeting with a delegation from ExxonMobil Upstream Company, led by its President, Liam Mallon, at State House, Abuja.

The three Executive Orders, effective February 28, 2024, were Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; Presidential Directive on Local Content Compliance Requirements, 2024; and Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines.

Tinubu, according to a press release issued by his media adviser, Ajuri Ngelale, also assured the ExxonMobil delegation that the federal government was committed to resolving the divestment issues, currently in court, between the company and Seplat Energy.

We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this,” the president said.

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