Nigerian regulators expect a formal approval of Exxon Mobil Corp.’s sale of its oil and gas assets to Seplat Energy Plc within four months.
The $1.3 billion sale in Africa’s largest oil exporter has awaited regulatory approval since 2022.
Now, the Upstream Petroleum Regulatory Commission has stated that the approval process is expected to be completed within the legal 120-day window, Bloomberg reported.
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 $1.3 billion, which could nearly quadruple its oil production to over 130,000 barrels per day.
Though former President Muhammadu Buhari initially supported the transaction, it was halted due to regulatory objections.
Africa’s top oil producer relies on the commodity for more than 90% of its foreign exchange and half its budget. However, output has declined in recent years due to underinvestment and theft.
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. However, these moves have faced regulatory obstacles.
Analysts believe that approving the Exxon-Seplat deal would bring much-needed investment to Nigeria’s oil sector, potentially boosting production and signalling to investors that similar deals, such as Shell’s sale of assets to Renaissance in January, could also receive regulatory approval.
