The Chairman of indigenous oil and gas company, Platform Petroleum, Chief Dumo Lulu Briggs has said that the ongoing divestment of a 100% interest in Mobil Producing Nigeria Unlimited shallow water assets (MPNU) to Seplat Energy Offshore Limited, means the federal government of Nigeria understands business.
Briggs disclosed this on Thursday in Abuja, at his sixty-year birthday event in Abuja.
He said the various divestments involving International Oil Companies(IOCs) in Nigeria, show that the oil and gas sector is on the right track.
Nairametrics previously reported Seplat Energy Plc’s announcement in February 2022 of its intention to acquire all shares of MPNU from Exxon Mobil Corporation for $1.28 billion.
Transition Period for Nigeria’s oil and gas sector
Briggs told newsmen at the sidelines of his sixty years birthday event, attended by Nairametrics, that while several divestment deals are still an ongoing process, the nation is making a headway in that regard.
“What you would have noticed is that the international oil companies, the IOCs are exiting their onshore assets and small independent companies and companies like Seplat, you know, are stepping in.
“So all of these processes, you know, are going on. It’s a transition period, ” Briggs said.
He also noted that a win-win situation is emerging in the oil and gas sector because Nigerians have taken over the management of several oil and gas industries in the country.
He added that the Petroleum Industry Act(PIA) signed into law by the Nigerian government has provided the legal framework that will help to further regulate the industry towards better efficiency.
He maintained that if relevant stakeholders are able to do their due diligence properly, then indigenous oil and gas companies ” can do quite well. “
“You have a government that is constantly trying to see how to make things better, you know. So with us in our industry, I feel that we’re quite excited.
“We think that they(federal government) understand what business means, ” he added.
What you should know
The deal between Exxon Mobil Corporation and Seplat involved the takeover of ExxonMobil Nigeria’s offshore shallow water operations.
However, NNPC decided to invoke its Right of First Refusal (RFR) regarding the sale of these assets.
In May 2022, *the federal government declined to approve the transaction, citing overriding national interest among other reasons for its decision.
Nairametrics also reported that President Bola Tinubu later met with ExxonMobil president Liam Mallon and other executives, assuring them of a quick resolution of the agreement between ExxonMobil and Seplat.
This development marked a significant step in the ongoing efforts to conclude ExxonMobil’s divestment plan announced two years ago, which has been the subject of intense legal and regulatory scrutiny.
Two weeks ago, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that Oando PLC has completed the acquisition of 100% shares of Nigerian Agip Oil Company Limited (NAOC Ltd).
For the Seplat proposed takeover of ExxonMobil Nigeria’s offshore shallow water operations, the Commission disclosed that the “company(Seplat) expressed commitment to proceed to apply for Ministerial Consent to NUPRC.”