Nigeria has approved the sale of Exxon Mobil Corp’s onshore assets to Seplat Energy, according to the chief executive officer of the country’s upstream regulator.
This decision comes more than two years after the $1.28 billion deal was first agreed upon. The sale had been under scrutiny while awaiting regulatory approval since it was announced in February 2022. On October 1, President Bola Tinubu stated that the deal would receive ministerial approval within days after clearance from the regulator. Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced on Monday at an event in Abuja that the ministerial approval had been granted.
Under the terms of the deal, Seplat will acquire a 40% interest in four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, as well as a 51% stake in the Bonny River natural gas liquids recovery plant, previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local subsidiary.
Oil majors in Nigeria, Africa’s largest oil exporter, have been retreating from onshore operations due to issues with theft and sabotage. As a result, they are focusing future investments on newer and more lucrative deep offshore fields. In July, the NUPRC also approved the sale of onshore assets by Eni’s local unit to Oando, as well as a sale from Equinor to a new entrant known as Project Odinmim.
The regulator announced in May that it would expedite approvals for pending asset sales by oil majors, provided they take responsibility for oil spills and compensate affected communities, rather than waiting for authorities to assign liability.