The deal, first announced in February 2022, had been awaiting the green light from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other regulatory bodies.
After more than two years of regulatory scrutiny, Nigeria has approved the $1.28 billion sale of Exxon Mobil Corp’s onshore assets to Seplat Energy.
The deal, first announced in February 2022, had been awaiting the green light from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other regulatory bodies.
The approval, confirmed by NUPRC’s CEO, Gbenga Komolafe, on Monday at an event in Abuja, follows President Bola Tinubu’s announcement on October 1 that the deal was set to receive ministerial endorsement.
Reuters reports that under the agreement, Seplat will acquire 40% of four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, as well as a 51% stake in the Bonny River natural gas liquids recovery plant, both previously owned by ExxonMobil's Nigerian subsidiary, Mobil Producing Nigeria Unlimited.
Oil majors in Nigeria, Africa’s largest oil exporter, have been pulling back from onshore operations due to persistent challenges like theft and sabotage, shifting their focus to more profitable deep offshore fields.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in July, approved the sale of Eni's onshore assets to Oando and Equinor's to newcomer Project Odinmim.
Meanwhile, in May, the regulator offered faster approval for pending asset sales by oil majors, provided they took responsibility for oil spills and compensated affected communities, rather than waiting for authorities to assign liability.