Nigerian President Muhammadu Buhari has approved Seplat Energy’s (SEPLAT.LG) acquisition of Exxon Mobil’s Nigerian unit in a $1.28 billion deal announced in February.
The deal received ministerial approval from Buhari, who also serves as oil minister, according to a statement issued by the presidency on Monday.
Exxon and Seplat are expected to operate the unit’s oil licenses, supporting Nigeria meet its OPEC production quota in the short term as well as accelerate the development of gas resources in the area.
In February, Seplat announced that its offshore unit had reached an agreement to pay $1.28 billion to acquire the entire share capital of Exxon’s Nigerian offshore shallow water business, plus a further consideration of up to $300 million based on the oil price and the average production of the unit, Mobil Producing Nigeria Unlimited, over a five-year period.
Both the London and Nigerian stock exchanges list Seplat.
