President Bola Tinubu has expressed his commitment to resolving the ongoing $1.28 billion divestment dispute between ExxonMobil and Seplat Energy. In a recent meeting at the State House in Abuja with ExxonMobil President Liam Mallon and other company executives, Tinubu emphasized the importance of finding a swift resolution to the issues hampering the transaction.
Seplat Energy moved to acquire Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil in February 2022 as part of the latter’s divestment strategy in Nigeria. However, this deal has been stalled due to legal challenges. The Nigerian National Petroleum Company Limited (NNPCL) secured a court order in July 2022 that temporarily barred ExxonMobil from selling its Nigerian assets to Seplat Energy. The injunction is linked to a dispute over the Nigerian National Petroleum Corporation’s (NNPC) Right of First Refusal (RFR) under the Joint Operating Agreement (JOA) of their Joint Venture (JV).
President Tinubu has assured ExxonMobil of the federal government’s dedication to resolving the legal impasse, noting the company’s longstanding contribution to Nigeria’s development. “We are navigating these issues carefully to ensure a win-win situation for all parties and to attract more investments,” Tinubu stated, highlighting ongoing reforms aimed at fostering a favorable business environment.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, confirmed that President Tinubu has directed both him and NNPC Group CEO Mele Kyari to address the divestment issues. Lokpobiri added that efforts are being made to resolve the matter as per the President’s instructions, aligning with the Petroleum Industry Act (PIA) and global best practices to ensure a conducive investment environment.
The completion of the Seplat-ExxonMobil deal would significantly increase Seplat’s production capacity by approximately 95,000 barrels of oil equivalent per day from the shallow-water assets currently operated in partnership with NNPC. Despite previous government objections citing national interest, there is optimism that the deal can be finalized under the current administration’s proactive measures.
