Nigeria to approve Exxon's $1.3bn oil asset sale to Seplat in weeks
Exxon Mobil's asset sale to Seplat Energy could be approved in less than two weeks, Nigeria's oil regulator said 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.
"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.
Oil majors 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. 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.
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