Shane Harris, Managing Director of ExxonMobil Nigeria, has firmly stated that the company has no intention of exiting Nigeria, contrary to recent rumors. This clarification follows ExxonMobil’s proposed sale of its 100 percent stake in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited, sparking speculation about the company’s future in the country.
In a meeting held in Abuja with the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Harris highlighted ExxonMobil’s ongoing and future investments in Nigeria’s oil and gas sector. The meeting underscored the company’s commitment to strengthening its partnership with the Nigerian government.
Nneamaka Okafor, the Special Assistant on Media and Communications to the petroleum minister, conveyed the details of the meeting in an official statement released on Monday. Okafor noted that Harris emphasized significant new investments ExxonMobil plans to make, reflecting the company’s continued confidence in Nigeria’s energy sector.
“We are excited about the prospects these new investments bring. Our partnership with the Nigerian government is crucial for sustainable growth, and we look forward to continuing our collaboration as we have no plan to leave,” Harris asserted.
Senator Lokpobiri expressed the Federal Government’s dedication to enhancing oil production and creating a favorable environment for investors. He emphasized the importance of collaboration with international oil companies to boost Nigeria’s energy sector.
“ExxonMobil’s planned investments are commendable and greatly appreciated. This renewed relationship is a testament to the mutual goals we share for the future of our energy sector,” Lokpobiri stated.
The discussions also touched upon the ministry’s support for both international and independent oil operators. Lokpobiri reassured Harris of the government’s backing, underscoring the importance of fostering a thriving environment for all stakeholders.
“We fully support ExxonMobil and other international oil companies, just as we do with independent operators. Our collaborative efforts are key to the sustainable growth of our energy sector,” Lokpobiri added.
Recent developments indicate that Nigeria could soon increase its daily crude oil output by 480,000 barrels. This follows a settlement agreement between the Nigerian National Petroleum Company Limited (NNPC) and ExxonMobil regarding the sale of ExxonMobil’s assets to Seplat Energy. This agreement came after President Bola Tinubu’s intervention to resolve the dispute, which had stalled the asset sale.
The prolonged crisis has cost Nigeria approximately $30 billion over the past two and a half years, with daily losses of around 480,000 barrels of crude oil. Initially, the asset was producing about 600,000 barrels per day until the conflict began in 2022, significantly impacting the nation’s oil revenues.
In 2022, ExxonMobil and Seplat Energy announced a $1.6 billion sales agreement, under which Seplat would acquire ExxonMobil’s shares in the NNPC. However, the deal faced a significant hurdle when the Nigerian Upstream Petroleum Regulatory Commission intervened, stating that the NNPC had exercised its right of pre-emption. This legal right allows parties in a joint venture to have the first option to purchase assets if they are put up for sale.
The NNPC’s objection and subsequent offer above $1.6 billion led to a protracted legal battle. However, after two years of litigation, a resolution now seems imminent, potentially ending the crisis and boosting Nigeria’s oil production capabilities.
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