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Oil majors offered faster Nigerian exit if they pay for cleanup
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Oil majors offered faster Nigerian exit if they pay for cleanup
May 3, 2024 7:41 AM

ABUJA/LAGOS, May 3 (Reuters) - Majors such as Exxon

Mobil ( XOM ) and Shell that aim to exit Nigeria's

onshore oil can get quicker approval to do so if they take

responsibility for spills rather than wait for authorities to

apportion blame, the regulator said on Friday.

Exxon, Shell, TotalEnergies, and Eni have all sought to

leave Nigeria's oil-rich Niger delta in recent years citing

security concerns, including theft and sabotage, to focus on

deepwater drilling. However, their exits have been delayed by

regulatory hurdles.

At a meeting with the companies in Abuja, Nigerian Upstream

Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe

offered a short-term option with faster approval if the

companies commit to cleaning up spills and compensating

communities.

"We have the undertaking here. The consent here though fixed

for June, could be much shorter," he said.

"If you agree to take that option, you sign the undertaking

knowing that there are obligations to be fulfilled," Komolafe

said.

The second long-term option involves waiting for NURPC to

identify and assign all liabilities, potentially delaying the

final approval until August.

NURPC is seeking to balance a faster exit for oil majors

with protecting the environment, local communities, and the

long-term viability of the assets

The companies are reviewing the options and will respond

soon, they said.

Analysts say the accelerated option could cost oil majors

millions of dollars for cleanups and reparations.

The departure of the majors means a total of 26 onshore

blocks are on offer, holding an estimated reserve of 13.76

billion barrels of oil, 2.70 billion barrels of condensate, and

about 90,717 billion cubic feet of gas, NUPRC said.

"We aim to ensure that the companies that take over these

blocks have the necessary financial resources and possess the

technical expertise required to responsibly manage the blocks

throughout their lifecycle in accordance with good asset

stewardship practices," Komolafe said.

(Editing by Elisha Bala-Gbogbo and Barbara Lewis)

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