Exxon Mobil’s long-pending asset sale to Seplat Energy may finally conclude within two weeks, ending a two-year delay since the initial agreement.
The $1.28 billion sale in Nigeria, Africa’s largest oil exporter, has been awaiting regulatory approval since 2022.
Gbenga Komolafe, chief of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), informed Reuters that the companies have been 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,” Komolafe stated.
The NUPRC will present two mutually exclusive options to the companies, which, if accepted, would facilitate approval of the deal, Komolafe explained.
Although he did not detail these options, he emphasized that the law mandates funds 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,” Komolafe said.
Nigeria, the leading oil producer in Africa, depends on oil for more than 90% of its foreign exchange and half of its budget. However, output has declined in recent years due to underinvestment and theft.
Major oil companies operating in Nigeria, including Shell and TotalEnergies, have exited their onshore shallow water operations, citing security concerns such as theft and sabotage, to focus on deepwater drilling. These moves have faced regulatory challenges.
Analysts suggest that approving the Exxon-Seplat deal could inject vital capital into Nigeria’s oil industry, potentially boosting oil output.
It would also signal to investors that regulatory approval for similar deals, like Shell’s asset sale to Renaissance in January, is likely.
