Nigeria on verge of approving delayed ExxonMobil-Seplat deal
Asset sale of Africa’s largest oil exporter has awaited regulator’s approval since 2022
02 May 2024 - 17:47
byCamillus Eboh and Isaac Anyaogu
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Abuja/Lagos — ExxonMobil’s Nigerian petroleum assets sale to Nigeria’s Seplat could be approved in less than two weeks, the country’s oil regulator said on Thursday.
The $1.28bn sale in Africa’s largest oil exporter has awaited regulator approval since 2022.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said the parties involved would be 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,” he said.
NUPRC would give the companies two mutually exclusive options that, if accepted, would permit approval of the deal, he 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.”
A spokesperson for Seplat declined to comment. An Exxon spokesperson did not immediately comment.
Observers said approving the deal would bring much needed investment into Nigeria’s petroleum sector. While it is pending, there is little incentive to put money into the assets, which means production will gradually decline.
Former Nigerian president Muhammadu Buhari initially consented to the transaction, but withdrew that consent days later after the oil regulator refused to sign off on it.
President Bola Tinubu, who took office last year, has made attracting investment a key priority.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Nigeria on verge of approving delayed ExxonMobil-Seplat deal
Asset sale of Africa’s largest oil exporter has awaited regulator’s approval since 2022
Abuja/Lagos — ExxonMobil’s Nigerian petroleum assets sale to Nigeria’s Seplat could be approved in less than two weeks, the country’s oil regulator said on Thursday.
The $1.28bn sale in Africa’s largest oil exporter has awaited regulator approval since 2022.
Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said the parties involved would be 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,” he said.
NUPRC would give the companies two mutually exclusive options that, if accepted, would permit approval of the deal, he 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.”
A spokesperson for Seplat declined to comment. An Exxon spokesperson did not immediately comment.
Observers said approving the deal would bring much needed investment into Nigeria’s petroleum sector. While it is pending, there is little incentive to put money into the assets, which means production will gradually decline.
Former Nigerian president Muhammadu Buhari initially consented to the transaction, but withdrew that consent days later after the oil regulator refused to sign off on it.
President Bola Tinubu, who took office last year, has made attracting investment a key priority.
Reuters
African institutions ‘unable to respond to violent extremism’
Nigeria triples electricity tariff for bigger consumers
Nigeria central bank hikes benchmark rate 200 bps
Nigeria to merge, scrap government agencies to trim costs
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Shell beats forecasts with $7.7bn quarterly profit
Shell is leaving Nigeria on a dirty note as new oil spill hits
SIMON NICHOLAS: Africa’s LNG projects threatened by global wave of new capacity
Investors push Equinor to align strategy with climate goal
Costs main bar to use of sustainable aviation fuel, ExxonMobil executive says
Exxon beats estimates, ends 2023 with a $36bn profit
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.