Nigeria Could Approve Exxon’s $1.3bn Oil Asset Sale to Seplat In Weeks

The New Diplomat
Writer

Ad

Wike, Fubara Absent As Ibas Holds Farewell Thanksgiving Service

By Abiola Olawale Minister of the Federal Capital Territory (FCT), Nyesom Wike, and suspended Governor Siminalayi Fubara of Rivers State were absent from the inter-denominational thanksgiving service held on Sunday to mark the end of emergency rule. The event, organized by the Rivers State Government, served as a farewell for Sole Administrator Vice Admiral Ibok-Ete…

Oritsemeyin’s license revocation, a clear warning to oil operators – expert

By Obinna Uballa The Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) revocation of the Oritsemeyin drilling rig’s operating licence is a wake-up call to upstream operators to tighten compliance with safety and operational standards, according to oil and gas consultant Dr. Maurice Ibe. Ibe, Group Executive Chairman of Benham Group, said the decision underscored the regulator’s…

PIA: Tinubu moves to transfer concessionaire powers from NNPCL to NUPRC in major shakeup

...MOFI to take control of NNPCL shares By Obinna Uballa Nigeria’s oil and gas industry is set for another major shake-up as President Bola Tinubu has reportedly approved sweeping proposed amendments to the Petroleum Industry Act (PIA) 2021, transferring ownership and concessionaire powers away from the Nigerian National Petroleum Company Limited (NNPCL). In a notice…

Ad

By Agency Report

Exxon Mobil’s (XOM.N), opens new tab asset sale to Seplat Energy (SEPLAT.LG), opens new tab could be approved in less than two weeks, Nigeria’s oil regulator told Reuters on Thursday, ending a two-year delay since the deal was first agreed.

The $1.28 billion sale in Africa’s largest oil exporter has awaited regulatory approval since 2022.

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe told Reuters the companies would be invited to a meeting on Friday.

“Subject to the outcome of the meeting, consent… could be given in less than two weeks from the date of the meeting,” he said.

NUPRC would give the companies two mutually exclusive options that, if accepted, would permit approval of the deal, Komolafe said.

He did not spell out what these options were, but said the law requires money to be set aside for decommissioning, host community development and environmental remediation.

“As a commission, we don’t want our nation to carry unwarranted financial burdens arising from the operations of the assets over time by the divesting entities,” he said.
Spokespeople for Exxon and Seplat declined to comment.

Africa’s top oil producer relies on the commodity for more than 90% of its foreign exchange and half its budget. But output has declined in recent years due to underinvestment and theft.

This spoon can be planted and could one day blossom into an herb or vegetable.

Oil majors operating in Nigeria, including Shell (SHEL.L), opens new tab and TotalEnergies (TTEF.PA), opens new tab, have exited their onshore shallow water operations, citing security concerns, such as theft and sabotage, to focus on deepwater drilling. Those moves have run into regulatory hurdles.

Analysts say approving the Exxon-Seplat deal would inject much-needed capital into Nigeria’s oil industry, potentially leading to improved oil output, and also signal to investors that similar deals such as Shell’s asset sale to Renaissance in January are likely to get regulatory assent.

Former Nigerian president Muhammadu Buhari initially consented to the transaction, but withdrew that consent days later after the oil regulator refused to sign off.

President Bola Tinubu, who took office last year, has made attracting investment a key priority.

Credit: Reuters

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp