. As SPDC – Renaissance undergoes review

By Udeme Akpan & Obas Esiedesa, Abuja

THE federal government, yesterday, said it has concluded Oando Plc acquisition of 100 per cent shares of Nigerian Agip Oil Company Limited (NAOC) as part of ongoing divestment in Nigeria’s oil and gas industry.

The government said the EQIONOR – PROJECT ODINMIM project divestment was also completed, adding that the Shell Petroleum Development Company (SPDC) – RENAISSANCE $2.4 billion deal was being reviewed while making progress in the $1.2 billion ExxonMobil downstream assets sale to Seplat Energy.
The Chief Executive, of Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Gbenga Komolafe, who disclosed this at the ongoing NOG Energy Week in Abuja, said the signing ceremonies for the two concluded deals would come up in a few days.

He said: “For some of you who were at the panel session on Monday, the Chairman of IPPG (Independent Petroleum Producers Group) raised issues about the need for us to give updates on the divestment programmes on-going. Now, I am here to give you a real-time update on the four major divestments in Nigeria.

“The NAOC-Oando divestment has been concluded and the signing ceremony will come up any moment.

“The EQIONOR – PROJECT ODINMIM project divestment was also completed. For the SPDC – RENAISSANCE deals, documents have been submitted. Those documents are undergoing due diligence as we speak.”

Speaking on the potential in Nigeria’s deep offshore, he said: “And for us in Nigeria, our deep offshore accounts for 43% of our total oil reserve. Also, our total international oil production, our deep offshore accounts for 30% of our daily production. And of the total world development, the deep offshore contributes 60% of the entire world.

“So the impact of this is that our deep offshore in Nigeria is very, very proficient, very prolific. Aside from the ease of exploring, the Nigerian deep offshore is equally an issue that I’m going to mention as relevant to the topic that we are discussing.”

Komolafe pointed out that while as a regulator it was not in a position to declare “war” on low oil production, it will continue to ensure that operators play by rules governing the industry.

Similarly, the Executive Vice President, of Upstream, NNPC Limited, Mrs. Oritsemeyiwa Eyesan, said: “We had very robust discussions with the International Oil Companies, IOCs, and the strategy was to let us align our interests, conclude with the IOCs and amend the prerequisite agreements that need to be amended. Today, I am happy to announce that we are at the point of finalizing these discussions.”

Already, NNPC Limited and ExxonMobil have signed the settlement agreement on the proposed asset divestment of MPNU to Seplat Energy Offshore Limited.

According to them, “Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. have been signed regarding the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.”

The signing of the deal followed President Tinubu’s recent directive requesting the Ministry of State for Petroleum Resources (Oil) and the Nigerian National Petroleum Company (NNPC) Limited to prioritize the deal and unlock many benefits for Nigeria and other stakeholders.

The assets include Oil Mining Lease, OML, 67, 68, 70 and 104 as well as Qua Iboe Terminal export facilities, 51 per cent interest in Bonny River Terminal and Natural Gas Liquids Recovery Plants t the East Area Additional Oil Recovery Project and Oso Condensate Project.