Nigeria renews Exxon Mobil Leases

Thisdayonline reports that the Federal Government of Nigeria has renewed three shallow water oil licences jointly held by the Nigerian National Petroleum Corporation and Exxon Mobil for a further twenty years. Although it is reported that ExxonMobil paid US$600million as signature bonus for these leases, by not reserving a portion of the interest in these leases for indigenous oil companies, the Federal Government may have missed an opportunity to deepen indigenous ownership of oil and gas resources. The move does suggest that the proposed acquisition of expiring or expired oil and gas assets by CNOOC, the Chinese state oil company may not fully materialise.