Nigerian regulators anticipate formal approval of Exxon Mobil Corp.’s $1.3 billion sale of its oil and gas assets to Seplat Energy Plc within the next four months.
The transaction, involving Africa’s largest oil exporter, has been pending regulatory approval since 2022. The Upstream Petroleum Regulatory Commission has now indicated that the approval process should be completed within the legally mandated 120-day window, according to Bloomberg.
In May, Nigeria’s state oil company reached an agreement that allowed Exxon to proceed with the sale. Seplat, a local energy firm, agreed to purchase the assets, a move that could nearly quadruple its oil production to over 130,000 barrels per day.
Although former President Muhammadu Buhari initially supported the deal, it was halted due to regulatory objections.
As Africa’s top oil producer, Nigeria relies heavily on oil, which accounts for more than 90% of its foreign exchange and half of its budget. However, the country has faced declining production in recent years due to underinvestment and theft.
Oil majors operating in Nigeria, including Shell and TotalEnergies, have been shifting focus away from onshore and shallow water operations due to security issues like theft and sabotage, preferring deepwater drilling instead. These shifts have encountered regulatory challenges.
Analysts believe that the approval of the Exxon-Seplat deal could bring much-needed investment to Nigeria’s oil sector, potentially boosting production and signaling to investors that similar transactions, such as Shell’s sale of assets to Renaissance in January, could also gain regulatory approval.
