Nigerian regulators are anticipated to approve Exxon Mobil Corp.’s $1.3 billion sale of its oil and gas assets to Seplat Energy Plc within four months.
The deal, which has been pending since 2022, would significantly bolster Seplat’s production capacity, nearly quadrupling its output to over 130,000 barrels per day. Although former President Muhammadu Buhari initially endorsed the sale, it faced regulatory hurdles.
However, the Upstream Petroleum Regulatory Commission now expects the approval process to be completed within the legal 120-day timeframe. Nigeria, Africa’s largest oil producer, relies on oil for more than 90% of its foreign exchange and half of its budget. Yet, declining output due to underinvestment and theft has plagued the industry.
The approval of this deal could indicate a positive change, potentially drawing more investment and setting the stage for similar transactions, like Shell’s asset sale to Renaissance.
