Page 7 - AfrOil Week 13 2022
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AfrOil                                       COMMENTARY                                                AfrOil


                         Amid pressure, predominantly from the UAE, a   They also said there was a feeling that alter-
                         compromise was reached among member coun-  native options may be under consideration,
                         tries in July 2021 to allow the quota reference   including a one-off uptick in output from Saudi
                         levels for the top producers to be eased.  Arabia and the UAE.
                           A deal was agreed for the baselines of the two   The market is clearly ready for more produc-
                         top producers, Saudi and Russia, to increase   tion, but the top OPEC producers will be wary
                         by 500,000 bpd to 11.5mn bpd each, with the   of eating into their spare supply at a time when
                         UAE’s rising by 332,000 bpd to 3.5mn bpd as   they may be called upon to provide larger vol-
                         Iraq and Kuwait also receive uplifts of 150,000   umes to compensate for a potential loss of more
                         bpd each, taking their baselines to 4.803mn bpd   Russian supplies.
                         and 2.959mn bpd respectively.          Having worked so hard to improve condi-
                           However, given uncertainty about Russian   tions for exporters, Saudi Arabia in particular
                         and Kazakh crude, delegates speaking on con-  will retain its cautious stance as it seeks to main-
                         dition of anonymity told various publications   tain its position as the de-facto leader of the oil
                         this week that there is a careful balancing act to   industry, with much of its power emanating
                         be done.                             from that spare capacity. ™




                                                     INVESTMENT
       Akwa Ibom aims to block ExxonMobil’s



       sale of MPNU stake to Seplat Energy






            NIGERIA      THE government of Nigeria’s Akwa Ibom state
                         has filed a counter-claim against ExxonMobil
                         (US) in a bid to block the super-major’s planned
                         sale of its stake in the Mobil Producing Nigeria
                         Unlimited (MPNU) joint venture to a local com-
                         pany, Seplat Energy.
                           Details of the new legal initiative came to
                         light at the weekend, with a state official telling
                         the press that the sale might not go forward until
                         the new suit, which was filed in response to an
                         ongoing case related to the revocation of certifi-
                         cates of occupancy, was settled.
                           According to a report from Vanguard, Akwa
                         Ibom’s State Attorney-General and Commis-
                         sioner for Justice Essien Udom noted that the
                         original case was still pending. Since that case
                         concerns MPNU assets that may belong to
                         Akwa Ibom, ExxonMobil should not be in a
                         position to proceed with the sale, he argued.
                           The state government is seeking an order to   Seplat will acquire ExxonMobil’s stakes in four Nigerian blocks (Image: ExxonMobil)
                         block the deal, Udom added, adding that the
                         decision to sell had thoroughly upset relations   wholly owned subsidiary Seplat Energy had
                         between the state government and ExxonMobil.   agreed to pay $1.283bn for ExxonMobil’s entire
                         “The attempt to sell its asset, some of which may   shallow water portfolio in Nigeria, which con-
                         include assets belonging to Akwa Ibom state, is   sists of MPNU’s 40% stakes in OML 67, OML
                         rather upsetting. Mobil has been in Akwa Ibom   68, OML 70 and OML 104.
                         State for several years and the relationship has   Subsequently, local news agencies reported
                         been very good until recently,” he said.  that the national oil company (NOC), Nigerian
                           Udom also complained that ExxonMobil had   National Petroleum Corp. (NNPC), which holds
                         not properly informed the state government of   the remaining 60% of equity in the blocks, had
                         its intentions. “Mobil has not formerly informed   exercised its right to pre-empt the acquisition.
                         the state government that they are selling off   Seplat later denied that report, though.
                         and leaving. Everything we heard was from the   As a result of the acquisition, Seplat will see
                         media, which is most irresponsible for any cor-  its net production rise to about 146,000 boepd,
                         porate citizen. There has been no direct contact   up from the 2020 level of 51,000 boepd. It will
                         with us,” he declared.               also see its proven and probable (2P) reserves
                           Seplat announced in late February that its   climb to 945mn boe, up by around 89%. ™



       Week 13   30•March•2022                  www. NEWSBASE .com                                              P7
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