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November 30, 2021

Seplat Energy considers acquisition of Exxon’s Nigerian offshore assets

Exxon intends to shift its primary focus towards profitable projects by selling its assets in Nigeria.

By Archana Rani

Nigeria’s Seplat Energy, together with its partner, are in negotiations with ExxonMobil to buy its shallow water business in Nigeria.

The Nigerian firm said that negotiations are underway with the US energy firm and ‘there can be no certainty as to the outcome’.

Exxon is considering selling its Nigerian asset as part of its plan to exit multiple oil and gas fields in Europe, Asia and Africa in order to focus on several profitable projects, according to Reuters.

Earlier this year, Exxon divested an 80% interest in a Ghanaian offshore block and is also planning to sell its stake in the Doba oilfield in Chad.

The company has reportedly started preparatory work for its Ca Voi Xanh (Blue Whale) gas project in Vietnam.

A company spokesperson said: “We completed front-end engineering and design for the project in May 2020, and are working on the final development plan.”

This move follows a debate by the company’s board last month regarding whether or not it wants to continue with its oil and gas projects, including the project in Vietnam.

The firm has been encouraged by investors to be more green-energy friendly and cost-conscious.

The Ca Voi Xanh project is estimated to hold approximately 150 billion cubic metres of gas reserves, which would make it the biggest project of its kind in the country. It is located off Vietnam’s central coast.

The firm plans to transport the gas from the field through an 80km pipeline for processing near Danang city. The processed gas will then be supplied to four proposed power plants in Vietnam’s central provinces.

The spokesperson added: “A final investment decision will be based on a number of factors, including regulatory approvals, government guarantees, executed gas sales agreements and economic competitiveness.”

In August, ExxonMobil announced it was looking to sell its shale gas properties in the US to reduce its debt.

The sale forms part of the company’s effort to accelerate its long-stalled programme to raise $15bn by divesting unwanted assets by December 2021.

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