By Uche Amunike
The Federal Government has announced that Oando has completed her oil assets deals with Nigeria Agip Oil Company (AGIP), as well as Equinor-Project Odinmin divestments.
This disclosure was made during the ongoing (NOG) Energy Week in Abuja, by the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, who also stated that the signing ceremonies for the two completed deals will take place soon.
He also discussed the Shell Petroleum Development Company (SDPC)-RENAISSANCE $2.4 billion deals, stating that significant progress was achieved in the $1.2 billion ExxonMobil downstream assets sale to Seplat Energy.
Hear him: ‘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 divestments 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 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.’
He also discussed the potential in nigeria’s deep offshore, stressing that it contributes 60%of the total world development towards the entire world, even as he described it as prolific and proficient.
His words: ‘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.’
He explained that even though it was a regulator, it was not enough reason to declare war on low oil production, assuring that it would continue to see that operators play by the rules governing the oil industry.
The Executive Vice President of Upstream, NNPC Limited, Mrs Oritsemeyiwa Eyesan confirmed that the discussions they had with the International Oil Companies were fruitful, stating that it was also strategic, as it helped amend the prerequisite agreements that needed to be amended.
Her words: ‘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.’
The NNPC Limited and ExxonMobil have already signed the settlement agreement on the proposed asset divestment of MPNU to Seplat Energy Offshore Limited. This was what led president Tinubu to recently request that the Ministry of State for Petroleum Resources (Oil) and the Nigerian National Petroleum Company (NNPC) Limited should prioritize the deal and make it possible for Nigeria and other stakeholders to benefit from it.
These 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.
