Written by Ediri Ejo
Signs indicate that the signing of the $1.28 billion ExxonMobil Seplat sale deal and other similar deals in the upstream sector of the Nigerian oil industry will increase oil production by 21.4 percent to more than 1.7 million barrels per day. there were.
President Bola Tinubu said on national television on Independence Day yesterday that the ExxonMobil-Seplat agreement would be signed by the government within days.
According to the Organization of the Petroleum Exporting Countries (OPEC), Nigeria produced 1.4 million barrels per day in August 2024, excluding condensate.
However, in separate interviews with Vanguard yesterday, experts said that with the addition of 300,000 to 400,000 barrels per day of condensate and additional production from ExxonMobil and Agip, which Oando has already taken over, Nigeria’s production It said volumes could rise to about 1.7 million barrels per day.
Giving this hint, the National Chairman of Oil and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi said: Therefore, reaching a conclusion as soon as possible is a good development and is very likely to lead to increased production, especially of oil and gas. ”
Another expert, speaking on condition of anonymity, said: “This will enable Nigeria to meet its future budget targets. The country had based its 2024 budget on 1.7 million barrels per day (including condensate and $77 per barrel). We have struggled to meet our targets throughout the first half of the year.”
The transaction, which involves Seplat Energy acquiring the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.28 billion, is subject to legal disputes. are.
The Nigerian National Petroleum Corporation (NNPC) Limited initially filed suit on July 5, 2022 seeking an injunction against the transaction, and the transaction was referred to court for arbitration on August 3, 2022.
However, following a directive from the President on May 28th to the Department of Petroleum Resources (Petroleum) and NNPC, a settlement agreement was signed on May 30th, resolving the sale issue and providing approval for Seplat and ExxonMobil. The road was opened. transaction.
In his Independence Day speech on Tuesday, President Tinubu stressed that the deal is in line with the government’s commitment to promote free enterprise while maintaining the integrity of the regulatory process.
“Our administration is committed to free enterprise, free entry and free exit for investment while upholding the sanctity and effectiveness of the regulatory process,” Tinubu said.
“These principles guide our divestment transactions in the upstream oil sector and we are committed to positively changing our fortunes.
“Therefore, the sale of ExxonMobil and Seplat has been concluded by the regulator NUPRC under the Petroleum Industry Act (PIA) and is expected to receive ministerial approval in the coming days. It was conducted in the same manner as any other qualifying sale.”
