Member Info for Temple_of_Doom

"By all means change rules for new business going forward if needs be. "

The rules across the 1969 and 2021 Oil acts in Nigeria were changed before Seplat signed the Exxon deal.

That is why there is a dispute. Whether the disputed rule changes can legitimately lead to a cancellation of the Seplat deal is another matter.

“ This message has been filtered, please adjust your filters to view‘

Seems to follow my posts these last two months.

Sometimes it’s good to filter.

;)

https://naija247news.com/2022/08/13/nigerias-seplat-begins-commercial-operation-of-67km-amukpe-escrabos-pipeline/

"Nigeria’s Seplat begins commercial operation of 67km Amukpe-Escrabos pipeline"

“ They questioned why the president would hand the oil asset to a private firm when the government has just recently commercialised the NNPC, making the former regulator an operator and competitor in the industry.‘

This is the problem with nationalisation … it’s as , if not more corrupt than the corporate world. NNPC is transformed to a public limited company, raises €5bn in loans, that it wants to use to buy Exxon assets, whereas Seplat, an already private company wants to buy Exxon assets from its own pockets.

The difference? One is abusing their combined position as regulator and recently transformed status to a private company, with a history of poor performance to asset grab ….

… while the other showed good business acumen to negotiate a timely deal.

There lies the problem with modern journalism … a failure to read between the lines and state the bleedin’ obvious.

.. article is out of date Herminator.

Read the thread.

“ I don't see possibility of Exxon being prevented from selling their shallow water business to whom they want‘

Ultimately Nigeria own the oil assets so would in effect be forcing Exxon to kind of nationalise the assets.

Governments can do what they like … and is partly the game being played by the NNPC.

One aim for the NNPC as I think I mentioned below is to cherry pick the best assets and then IPO itself.

Fundamentally, the issue id the NNPC being both regulator and limited company. Regulators should be independent of business… to avoid the obvious abuse of position that we are seeing with the Seplat debacle.

When one works through, NNPC are simply wrong to claim first right of refusal, since the purchase of Exxon mobile assets was undertaken at the corporate level, that only needs consent from the Minister of Petroleum … that has now been given and is clear from Seplat’s RNS and the President’s wording in his approval in citing 1969 acts.

That NNPC have come out to argue otherwise of course has embarrassed the President, whose intention seemed to be one of hurrying up this outstanding process - but the NNPC are correct that a court block is still pending.

I suspect the President was betting on NNPC taking the hint and withdrawing the court block.

Meanwhile, the President retains the right to sack people in the NNPC .. so someone I suspect is in for the chop.

That’s why the wording “on hold” versus “reversal” is so important.

Looks like the market agrees with my view.

GLA

10% Tax to pay on dividends Trek unless you know a way around it ….

My 125 Trek?

125 was on the basis of a reversing Presidential decision …. We now have a decision on hold different ball game with a completely different outcome.

Still … pressure now moves back onto the NNPC … the President is happy to approve the Seplat takeover as soon as the NNPC realise they are wasting everyone’s time and money.

Withholding is not reversing … and big big difference.

A PR nightmare … the President need only have said on Monday that his current approval was subject to the 2021 approval of regulatory issues according to the PIA but granted through his powers afforded by the 1969 PA as Minister … and urges all parties to complete due diligence quickly.

“ “The president has decided to allow the regulator to do their work. He is withholding his earlier given approval, for now, to allow the process to be completed, that is basically it,” presidential spokesman Garba Shehu told Reuters.‘

That’s more like it …. The Donkey can stop for a drink.

:)

Suspect the presidential letter being delivered to Seplat will arrive on the back of a Donkey next year sometime.

Arsenal58 …. Lol me neither.

The permutations here are numerous …. as already discussed …

Exxon is under no obligation to sell to NNPC at the price agreed to Seplat …. While Seplat can now sue the Nigerian government for posting misleading news.

Meanwhile, the President will be wondering how to get himself out of the hole he just dug for himself.

Our Johnson is a lazy smart bloke playing fool …. Nigeria have a fool playing himself.

;)

"Will definitely cause a kercuffle in the upper echelons"

As a limited company the NNPC saga demonstrates the futility in being a Nigerian indigenous oil&gas producer - the aim for NNPC is to turn it into a Saudi ARAMCO and push it onto market with an IPO in a year... it's laughable. The company is run by incompetents whose fingers are in so many corrupt pies, that starvation is a problem.

The above said, Seplat needs to gain something out of this deal .... if NNPC wants to be the major player in the NIgerian market, let this be so, and so let Seplat sell its natural gas to the EU.

"Shell"

Misses the point ... NNPC is now a profit oriented limited company and regulator that is trying to claim first refusal on oil major assets leaving Nigeria.

NNPC history is a hotbed of incompetence and corruption - from which it follows, that assets NNPC don't want will have little value relative to the jucier parts being claimed now.

"finance money elsewhere in the world"

... is more like it - but where? The majors are moving to other parts of the world also, while Seplat is a specialist in Africa.

Expect the share to retest 110 … that us cheaper still …. then depending upon the statement officially released 90p or 125p max IMO.

All that was needed last night was clarification about the impending court case … that the market already knew about.

Giving a half statement has just added mud to an already dirty pond.

Day traders dream today … cleared those bought 111 and below …. Ready for the shorts to have another pop.

The easy way for Buhari to get out of this .. is to stick to his original letter to Seplat, based upon the PA of 1969 but hide behind his regulator and support the JOA challenge brought about by the regulator ...

.. they are different issues.

https://orientalnewsng.com/seplat-exxonmobil-exposes-buharis-knowledge-gap-of-of-bills-he-assents-to-experts/

Writes:

"But giving an update on the issue, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, hinted that Buhari had reversed the decision and the previous misunderstanding was because the “agencies involved in (the) decision had not coordinated well among themselves.”

What does "reversing the decision" mean and was does "hinting" mean .... nothing official yet ... Buhari could simply be supporting the NNPU in taking the case to court for legal outcome.

Grabbed a load at 110p.