Nigeria Approves Seplat’s $1.28bn Purchase of ExxonMobil’s Onshore Assets

The Federal Government has given the green light to Seplat Energy’s purchase of Exxon Mobil Corp’s onshore assets, more than two years after the $1.28 billion deal was first agreed, according to the head of the country’s upstream regulatory body on Monday.

The deal, initially announced in February 2022, had been under regulatory review, awaiting approval.

On October 1, President Bola Tinubu said the deal would soon receive ministerial approval after securing the necessary regulatory clearances.

On Monday, Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), confirmed at an event in Abuja that the ministerial approval had been granted.

As part of the agreement, Seplat will acquire a 40% stake in four oil mining leases, along with key infrastructure, including the Qua Iboe export terminal and a 51% stake in the Bonny River natural gas liquids recovery plant, previously owned by Exxon’s Nigerian unit, Mobil Producing Nigeria Unlimited.

Oil majors in Nigeria, the largest oil producer in Africa, have been gradually withdrawing from onshore operations due to persistent issues like oil theft and sabotage. They are now focusing on more promising deep offshore fields for future investments.

In July, the NUPRC also approved the sale of Eni’s onshore assets to Oando and another from Equinor to Project Odinmim, a new player in the sector.

In a bid to speed up approvals for pending asset sales, the regulator offered oil companies faster clearances in May, provided they took responsibility for oil spills and compensated affected communities, rather than waiting for authorities to assign liability.