The Nigerian Federal Government has announced plans to approve the long-pending $1.28 billion divestment deal between ExxonMobil and Seplat Energy, marking a significant move in the nation’s oil sector. President Bola Ahmed Tinubu, in his independence day speech on October 1, 2024, confirmed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has approved the deal, with ministerial approval expected in the coming days.
President Tinubu, who also serves as Nigeria’s Minister of Petroleum, reiterated his administration’s commitment to free enterprise and regulatory transparency. He noted, “The ExxonMobil-Seplat divestment will receive ministerial approval in a matter of days, having been concluded by NUPRC in line with the Petroleum Industry Act, PIA.”
Background Information: Seplat Energy Plc first announced its intent to acquire 100% of ExxonMobil’s Nigerian subsidiary, Mobil Producing Nigeria Unlimited, for $1.28 billion in February 2022. However, the deal was initially blocked by the Nigerian National Petroleum Corporation (NNPC), citing a right of first refusal over such transactions. The previous administration of President Muhammadu Buhari also opposed the deal, citing national interest concerns.
The shift in government stance came in July 2024 when, under President Tinubu’s leadership, the NNPC approved the deal, aligning it with the Petroleum Industry Act (PIA).
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