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)