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- Nigeria to compete for further deepwater investments
Sopuruchi Onwuka
American multinational oil company, ExxonMobil, is hopeful to progress with its plans to claw back princely $1.2 billion from its brownfield petroleum assets trapped in joint venture operations with the Nigeria National Oil Company (NNPC) Limited in the shallow waters of Niger Delta.
A top executive of ExxonMobil Corporation told agency sources ahead of CERAWEEK in Houston, United States, that the company hopes to get governments’ approval to allow divestment of its stake in the shallow water oil assets to Seplat Petroleum.
Global Upstream President of the company, Liam Mallon, said whereas ExxonMobil would keep its deep-water assets in Nigeria it is determined sell its water stakes in the country.
Exxon one year ago disclosed plans to sell its $1.2 billion in shallow-water assets in Nigeria. But the government in August withheld its initial approval without providing an explanation.
With political uncertainty in the picture following the controversial February 25 elections, companies in the country are pushing hard to cut risks and conclude pending deals before a new government settles in.
In a separate move, Seplat Energy Plc also said it was working with the government to get the deal approved before the new president is sworn in.
The company which has been in corporate board crises in the past two years is currently working hard to meet multiple obligations to stakeholders including lenders and shareholders.
Despite its immediate troubles, Seplat vows that it is solidly committed to concluding the asset acquisition as crucial part of its inorganic growth strategy.
Managing Director, Mr Roger Brown, had told The Oracle today that the company had spied the opportunity for the deal and made unsolicited offer to take off the portfolio from ExxonMobil, explaining that there were no contentions between the two willing parties in the deal.
Mr Mallon told media sources that Nigeria “remains a challenging” environment to work, adding that whereas ExxonMobil has made “a clear commitment” to maintain its deep-water operations, “future investments will be subject to market conditions.”
He said Nigeria would now compete with other opportunities around the world with attractive opportunity for ExxonMobil’s future deepwater investments.
