Nigeria has officially approved Seplat Energy’s $1.28 billion purchase of Exxon Mobil Corp’s onshore assets, according to the CEO of the country’s upstream regulator on Monday, October 21. The approval follows more than two years after the deal was first agreed.
The sale had been under scrutiny as it awaited regulatory approval since it was first announced in February 2022.
President Bola Tinubu said on Oct. 1 the deal would receive ministerial approval in a matter of days after getting clearance from the regulator.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) CEO Gbenga Komolafe said on Monday at an event in the capital Abuja that the ministerial approval had been granted.
Under the deal, Seplat will own 40% of four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, and 51% of Bonny River natural gas liquids recovery plant previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local unit.
Oil majors in Nigeria, Africa’s largest oil exporter, have been shifting away from onshore operations due to theft and sabotage, choosing instead to direct future investments toward newer, more profitable deep offshore fields.
In July the NUPRC approved the sale of onshore assets by Eni’s local unit to Oando and another from Equinor to new entrant Project Odinmim.
In May, the regulator offered quicker approval for pending asset sales by oil majors, urging them to take responsibility for oil spills and compensate affected communities, rather than waiting for authorities to assign liability.
