THE NNPC/NURPC – EXXONMOBIL – SEPLAT – STALEMATE
A SOUR FAMILY AFFAIR BEYOND PRESIDENTIAL MEDIATION

By Adeyemi Olayisade–Abel

NNPC was formed in 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Petroleum and Energy Resources. It manages the joint venture between the Nigerian federal government and a number of foreign multinational corporations, which include Royal Dutch Shell, Agip, ExxonMobil, Total Energies, and Chevron.
When ExxonMobil commenced a Joint Venture with the Federal Government of Nigeria, through the Nigerian National Petroleum Corporation (NNPC), the Federal Government held 60 percent share, with the remaining 40 percent held by MPN when the company was granted Oil Prospecting License (OPL) offshore in the present Akwa Ibom State, Nigeria.
NNPC and ExxonMobil for more than six decades had maintained a very inextricable bond which had been visibly seen in its past relationship, their union appealed to many industry watchmen as largely healthy, especially with this current administration, having witnessed the immediate appointment of Ibe Kachikwu a former head of legal affairs and also a former Executive Vice-chairman of ExxonMobil, to head the NNPC as Group Managing Director at the very inception of the Buhari led administration in 2015, the legal juggernaut alongside several technocrats in the company were brought to heads and serve in several government Petroleum Departments and Agencies in the country.
Having witnessed firsthand the joint operations that connects the duo of ExxonMobil and NNPC while serving as an officer with this international oil giant planning the itinerary for their monthly reconciliation rituals at different luxury conference halls in Lagos and Abuja, I fulsomely admired the level of cooperation between the two parties.
Aside from the prestige accorded the squad of ExxonMobil, the height of admiration held for the oil giant was unparalleled, this got onlookers debating maybe the ExxonMobil brand elegance or the financial responsibility it gallantly bears to facilitate their exquisite meetings was the magic wand. Now the business romance is changing, I can say for a fact that the beautiful bride that before was adored is no longer interested in the union which was indeed a fruitful one, blessed with fruits, coming with several plaques and awards to the company’s credit, although these plaques ends in dust having being dumped in some store rooms where heaps of files are trashed within the building.
When two parties both give 100 percent, they build a strong bond, such union guarantees flexibility and the ability to cope with crises and problems, but this is far from reality. For ExxonMobil, having to deal with an unbearable operational environment, starting from insensitive actions from high handed regulators the “husband man” NNPC and its in-laws NUPRC, DPR, NAPIMS among numerous others, and then facing rising insecurity challenges in the oil producing regions, where killings and kidnapping of employees raged, occasioned by continuous threats by host communities to wreak havoc most of which were achieved.
Notwithstanding ExxonMobil maintained a very active community relations, it made substantial contributions in areas of health, education, sports, water supply, electricity and roads, especially around its operational bases in Akwa Ibom and Rivers state these acts of kindness were remarkable.
ExxonMobil driven desire to encourage her in-laws for a better union was what kept their matrimony till its dissolution early this year, it is valid to say that any husband that neither values nor appreciate his spouse and tolerate their shortcomings will lose her to a waiting suitor, now Mobil Producing Nigeria is close to the exiting this joint venture operation, a step to shutting the door behind them, but NNPC as a supreme king should not stay wifeless for long, here comes a young home grown damsel, no longer naïve, parched with bruises suffered from the rod of regulatory assaults, yet she stands tall in the midst of her oppressive regulators, her name is Seplat.
Seplat was formed in June 2009 through the partnership of Shebah and Platform Petroleum Joint Ventures Limited to specifically pursue upstream oil and gas opportunities in Nigeria, indeed she is young but no longer a neophyte to the murky waters of oil business, now incredibly she alone swallowed Mobil Producing Nigeria without any digestive tract obstruction, her gumption is scary and such unprecedented feat is worthy of every accolade. According to the transaction summary, Seplat Energy Plc, entered into a sale and purchase agreement to acquire the entire share capital of Mobil Producing Nigeria for a purchase price of $1,283 million plus up to $300 million contingent consideration, including the working capital and other adjustment, but unfortunately the deal was terminated by the industry regulators.
Now Nigeria has happened to Nigerians again, the bereaved counterparts blocked the deal, what are their justification? If one may ask, It is sickening to begin discussions on those issues, now we hear that ExxonMobil village in-laws, the Akwa Ibom state government has warned Seplat Energy Plc against the move to acquire the assets of Mobil Producing Nigeria Unlimited, the state pointed out that there was a subsisting restraining orders of injunction by the High Court of the state.
It is worthy of note that this deal has been duly ratified by the president who also heads the petroleum ministry and who is statutorily loaded with the exclusive powers of approvals and rejections based on provision of the Petroleum industry bill.
Now, as with Seplat energy their astronomical ascension to greatness of this stature, should applauded in the energy sector, as it seems impossible to believe that with this current moribund economy, one would marvel seeing that Seplat energy could stake more than $1.5 Billion on a company that is blighted with myriad of operational risks and challenges, I hail the Seplat nation, it is way bigger than a team, I salute its tenacity of intention.
As the controversy rages unabatedly, keen watchers decry the worsening oil theft situation that has risen to about 400,000 barrels per day, yet regulators have been so consumed with killing a deal to give indigenous energy firms the capacity to boost Nigeria’s moribund production capacity.
Hence to the overzealous regulators, I reiterate for the umpteenth time, what are your justifications for these actions? According to the publisher of Africa Oil and Gas Report, Toyin Akinosho, he decried the impropriety of NUPRC’s public spat with the Presidency, saying it was needless, he noted that this move is definitely sending wrong signals to the investment world.
I think it is time we win Nigeria for greatness, hence in the spirit of nationhood and goodwill for this government nearing its transition let us put Nigeria’s interest first and consummate the ExxonMobil-Seplat deal to save the country this reoccurring stigma and rebuild investors’ confidence.

Fiscal Transparency Initiative Nigeria
ftinigeria@gmail.com