FG Finally Approves $1.28bn Seplat-ExxonMobil Deal

The Federal Government has finally approved the sale of Exxon Mobil Corp’s onshore assets to Seplat Energy.

Mr. Gbenga Komolafe, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), disclosed the ministerial approval in Abuja on Monday.

The deal, valued at $1.28 billion, has suffered regulatory delay since February 2022, when it was announced.

President Bola Tinubu had in his Independence Day address on October 1, said the transaction aligns with the administration’s commitment to fostering free enterprise while maintaining the integrity of regulatory processes.

Speaking during NUPRC’s third anniversary celebration and launch of Project 1MMBOPD Initiative, Komolafe said the ExxonMobil approval was one of the four divestment approvals granted by the federal government out of the five applications.

“We are happy today to announce the status of divestment exercise conducted diligently by the Commission in line with the provisions of the PIA. Out of the total of five divestment applications for consent received by the Commission, a total of four, representing 80 percent passed regulatory test and secured ministerial consent.

“The transactions are Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited; Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited; Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited and TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited”, he said.

The company will also get key infrastructure, including the Qua Iboe export terminal and a 51 percent stake in the Bonny River natural gas liquids recovery plant, both previously owned by Exxon’s local subsidiary, Mobil Producing Nigeria Unlimited.

Meanwhile, Komolafe disclosed that the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited could not scale regulatory test.