By Toyin Akinosho
Nationalism and ‘pretenses of nationalism’ ensured the failure of asset acquisitions by three ambitious independents in Chad, Cameroon, Gabon and Nigeria between 2021 and 2024.
The most recent case was in Gabon, where a new government, taking power in the midst of the approval process for Maurel et Prom (M&P)’s purchase of Carlyle backed Assala Energy’s assets, chose to scuttle the deal and hand the property over to Gabon Oil Company, the state hydrocarbon firm. If the transaction had succeeded, as signed, M&P’s net output in its entire portfolio would have soared by 160% to 72,000Barrels of Oil Equivalent Per Day (BOEPD).
While the Paris listed M&P walked quietly away, preferring not to argue with the state, UK based Savannah Energy chose to stand firm against Chadian authorities over the latter’s nationalization of the assets it purchased from Exxon-Mobil. The size of the pie is considered significant to Savannah: a net crude oil production of around 28,000BOPD, along with interests in the 1,200kilometre Chad-Cameroon pipeline. Savannah has taken the Chadian government to arbitration. It says in its 2023 annual report released in June 2024: “We expect the arbitral proceedings to be concluded in the second half of 2025”.
UNDER THE PRETEXT OF SAFEGUARDING NIGERIA’S ECONOMIC AND STRATEGIC interests, state hydrocarbon company NNPC, in May 2022, moved to stop Seplat Energy’s purchase of the entire share capital of the Nigerian unit of Exxon-Mobil Corporation – Mobil Producing Nigeria Unlimited (MPNU)-for a consideration of $1.28Billion. The asset is the entire offshore shallow water business of ExxonMobil in Nigeria, producing 95,000BOEPD in 2020 (92% liquids) working interest. Based on 2020 pro forma volumes for Seplat and MPNU, “the transaction would deliver 186% increase in …
