The Federal Government has announced the successful completion of significant oil asset transactions between Nigerian Agip Oil Company (NAOC) and Oando, as well as Equinor’s Project Odinmim divestments.
This was disclosed by Engr. Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), at the ongoing NOG Energy Week in Abuja.
Engr. Komolafe stated that the signing ceremonies for these deals would take place in the coming days, highlighting the importance of these developments in the nation’s oil and gas sector.
“The NAOC-Oando divestment has been concluded, and the signing ceremony will occur shortly,” Komolafe revealed.
“The Equinor-Project Odinmim divestment was also completed. For the Shell Petroleum Development Company (SPDC) – RENAISSANCE $2.4 billion deal, significant progress has been made, with documents currently undergoing due diligence. Additionally, the $1.2 billion ExxonMobil downstream assets sale to Seplat Energy is advancing well.”
Komolafe emphasized the critical role of Nigeria’s deep offshore reserves, which account for 43% of the country’s total oil reserves and 30% of daily production.
Globally, deep offshore contributes 60% to the overall development in the sector, underscoring the proficiency and prolific nature of Nigeria’s deep offshore operations.
Addressing concerns about low oil production, Komolafe stressed the NUPRC’s commitment to ensuring that operators adhere to industry regulations without declaring “war” on production levels.
Similarly, Mrs. Oritsemeyiwa Eyesan, Executive Vice President of Upstream at NNPC Limited, highlighted the robust discussions with International Oil Companies (IOCs) to align interests and amend necessary agreements. She announced that these discussions are nearing finalization.
In a related development, NNPC Limited and ExxonMobil have signed a settlement agreement on the proposed asset divestment of Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited. This agreement aligns with President Bola Ahmed Tinubu’s directive to prioritize the deal and unlock numerous benefits for Nigeria and its stakeholders.
The assets involved in the divestment include Oil Mining Leases (OML) 67, 68, 70, and 104, as well as the Qua Iboe Terminal export facilities, a 51% interest in the Bonny River Terminal, and Natural Gas Liquids Recovery Plants at the East Area Additional Oil Recovery Project and Oso Condensate Project.
These strategic divestments and acquisitions signify a significant shift in Nigeria’s oil and gas landscape, promising to enhance operational efficiency and boost the nation’s economic prospects.