Breaking News: After a long two year wait the Federal Government of Nigeria has at last approved a major oil industry deal for the sale and transfer of $1.2 billion worth of onshore assests from ExxonMobil to Seplat Energy, 9am News Nigeria can report..
Gbenga Komolafe, The CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed this on Monday October 21, in Abuja.
The divestment deal was made and tabled before the regulatory agency in Nigeria since February 2022 where it has awaited approval for over two years and half.
On October 1, 2024 during his Independence Day broadcast, President Bola Tinubu stated that the deal is on the verge of receiving ratification by the government assuring that it will receive ministerial approval within days.
In President Tinubu’s statement he said “Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes”.
“This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively”.
“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector”.
Background information
In 2022, Seplat Energy Plc announced that it plans to acquire all shares of Mobil Producing Nigeria Unlimited a subsidiary of ExxonMobil Corporation, Delaware, for the sum of $1.28 billion.
Later in May that same year (2022) the federal government declined to approve the transaction, citing overriding national interests.
Furthermore, in July 6, 2022, following a law suit filed by NNPC a judge in Abuja issued an interim injunction barring ExxonMobil from entering any divestment deal with a subsidiary holding four licenses in Nigeria.
However, by July 2024, NNPC withdrew the lawsuit and granted approval for the sale to proceed in line with the Petroleum Industry Act (PIA).
ExxonMobil is only one among the several international oil company (IOC) divesting from onshore operations and adopting an offshore-focused investment in Nigeria.
In January 2024, Shell Plc reached an agreement to sell its onshore oil assets in Nigeria to a local consortium for over $1.3 billion. 9am News Nigeria recounts that the deal was rejected by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) citing a lack of capacity by the buyers to properly manage the assets.
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