Nigeria has approved Exxon Mobil Corp’s sale of its onshore assets to Seplat Energy, two years after the $1.28 billion deal was first announced, Reuters reported.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) CEO, Gbenga Komolafe, confirmed the ministerial approval during an event in Abuja.
In August, the Nigerian Upstream Petroleum Regulatory Commission announced that the approval process was expected to be finalized within the legal 120-day window.
In a separate statement on October 1, President Bola Tinubu assured that the deal would receive approval shortly after obtaining regulatory clearance.
In May, Nigeria’s state oil company reached an agreement allowing Exxon to move forward with the sale. Seplat, a local energy firm, agreed to purchase the assets for $1.28 billion, which could nearly quadruple its oil production to over 130,000 barrels per day.
The deal, which had been under review since February 2022, allows Seplat Energy to acquire a 40% stake in four oil mining leases and associated infrastructure, including the Qua Iboe export terminal. Additionally, Seplat will own 51% of the Bonny River natural gas liquids recovery plant, previously held by Mobil Producing Nigeria Unlimited, Exxon’s local unit.
In July, the NUPRC approved similar asset sales, one by Eni’s local unit to Oando and another by Equinor to Project Odinmim.
Nigeria, Africa’s largest oil producer, depends on the commodity for over 90% of its foreign exchange earnings and half of its national budget. However, in recent years, oil majors operating in Nigeria, including Shell and TotalEnergies, have shifted away from onshore and shallow water operations due to security issues like theft and sabotage, focusing instead on deepwater drilling.
In September, Exxon Mobil Corp has announced plans for a $10 billion investment in offshore oil operations as part of a renewed push in Nigeria.
To speed up the process of future asset sales, the regulator announced in May that it would offer faster approvals if oil companies took responsibility for oil spills and compensated affected communities, rather than waiting for the authorities to assign liability.
