Shell Petroleum Development Company (SPDC) and Exxon Mobil, have no plan to leave Nigeria, at least for now. This is according to the Ministry of Interior Affairs, which debunked the oil and gas companies’ exit rumour.
The Ministry of Interior Affairs made this clarification, as Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary, Seplat Energy Offshore Limited, recently acquired Mobil Producing Nigeria Unlimited (MPNU), which is ExxonMobil Corporation’s equity interest in its shallow-water business.
The deal was said to have been closed at $1.283 billion. In addition, a $300 million contingent consideration is also part of considerations.
Commenting on the transaction, the President, ExxonMobil Upstream Oil and Gas, Liam Mallon said, “This sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.
“We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximise the value from our deepwater operations.”
However, in a statement cited by BizWatch Nigeria, the ministry quoted the Vice President, Human Resources, Shell, Olukayode Ogunleye, to have said their most of their oil wells have been shut down due to the alarming insecurity situation in the country, Shell and Exxon Mobil would stay in the country.
The statement read: “The Vice President Human Resource, Shell Petroleum Development Company confirmed that Shell, and Exxon Mobil are not leaving Nigeria.
“The Federal Government has a large share in it, despite the very tough and trying environment around the Niger-Delta region where most of the oil wells are shut down due to insecurity of lives and opportunities, they are still forging ahead to ensure equity diversification of their business to build a smaller emerging business to assist in growing the Nigerian economy from both the deepwater business to the new Nigerian Natural Liquefied Gas.
“This will enhance the transfer of gas and power to Aba, Ota and Agbara; – all these he said are huge businesses in which the Federal Government of Nigeria owns large shares.”