Home Oil and Gas NNPC Limited, ExxonMobil seal settlement agreement on $1.28bn asset divestment deal

NNPC Limited, ExxonMobil seal settlement agreement on $1.28bn asset divestment deal

by Business News Report

NNPC Limited and ExxonMobil have signed the settlement agreement on the proposed $1.28 billion asset divestment of Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited. In a statement NNPC Limited, said “Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. 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 prioritise the deal and unlock many benefits for Nigeria and other stakeholders.

Meanwhile ExxonMobil is scaling back its operations Nigeria as the company is shrinking its office space in Lagos. Exxon has reportedly vacated its large office in Lagos, opting for a smaller, more centralised location. Similar downsizing is expected in other Nigerian cities where the company has a presence. According to Reuters, Exxon is relocating staff from the 12-floor Mobil House, reportedly leased at the cost of $10 million annually, to a six-floor office building 22 kilometres away in the upscale Ikoyi area, built to accommodate half the personnel working at the former offices. “The new office leaves no one in doubt about its future plans for Nigeria,” a staff member of the company told Reuters. The exact number of employees affected by the office closures is unclear, but the move is likely to result in job losses and a smaller overall footprint for Exxon in the country.

ExxonMobil has been operating in Nigeria for over 50 years and is one of the largest oil producers in the country. The company’s scaling back is likely to have a significant impact on the Nigerian oil and gas sector, as well as the broader economy. Industry analysts suggest that Exxon’s decision is part of a wider trend among international oil companies (IOCs) in Nigeria. Many IOCs are facing pressure to reduce costs and streamline operations, leading to a shift towards smaller, more efficient teams. The long-term impact of Exxon’s downsizing on the Nigerian oil and gas sector remains to be seen. However, the move underscores the challenges facing the industry and the need for adaptation in the current economic climate.

Related Posts