Nigeria Loses $30 Billion as NNPC Gives Order to ExxonMobil Over Asset Sale to Seplat
- ExxonMobil is expecting the NNPC to lift restrictions placed on it to stop the energy company from selling asset to Seplat Energy
- This came as the NNPC said it has concluded the planned sale of a 100% stake in Mobil Producing Nigeria Unlimited
- If the legal issues surrounding the asset's sale to Seplat are settled, Nigeria's oil production is projected to rise by 480,000 barrels
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ExxonMobil said it is waiting on the Nigerian National Petroleum Company Limited to remove the injunction blocking it from selling its asset to Seplat Energy.
Source: Getty Images
Oge Udeagha, the company's regional communications manager for Africa, said this in response to a question.
The NNPC had earlier announced on Thursday that it reached a settlement with ExxonMobil firms in Nigeria on the planned sale of a 100% stake in Mobil Producing Nigeria Unlimited to Seplat Energy.
The energy company said:
“Settlement agreement between NNPC Ltd and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. signed regarding the proposed divestment of a 100 per cent interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.”
Nigeria's oil production is estimated to increase by 480,000 barrels if the disputes surrounding the asset's sale to Seplat are resolved.
Nigeria lost millions of dollars
Heineken Lokpobiri, the minister of states for petroleum, recently stated that Nigeria had lost almost $30 billion over the previous 2.5 years due to the botched divestiture.
Lokpobiri voiced worries over Nigeria's daily loss of roughly 480,000 barrels of crude oil as a result of the Seplat/ExxonMobil dispute.
The minister claimed that prior to the catastrophe starting in 2022, the asset was producing roughly 600,000bpd. He added that as production fell to 120,000 barrels per day, the nation was losing millions of dollars every day.
For more than two years, the divestment agreement between Seplat and ExxonMobil has been inactive.
The Punch revealed on July 12, 2022, that NNPC had thwarted ExxonMobil's attempt to sell its assets to Seplat.
According to the report, NNPC secured a court ruling that temporarily barred ExxonMobil Corporation from divesting its Nigerian assets to Seplat Energy Plc.
In February, Seplat had agreed to pay at least $1.28 billion to acquire the affiliate of the US oil behemoth.
According to the allegation, NNPC intended to revoke the permissions and prevent the transaction from occurring.
On July 5, 2022, NNPC filed a lawsuit against Mobil Producing Nigeria Unlimited. The company requested that the Federal High Court declare a preemption rights issue between the parties and mandate arbitration.
NNPC reports increase in oil production
Legit.ng reported that the Nigerian National Petroleum Company Limited has announced an increase in Nigeria's oil production.
According to Mele Kyari, the NNPCL's group chief executive officer, Nigeria now produces 1.7 million barrels per day.
This represents a significant increase compared to the 1.28 million barrels per day reported in April.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
