Seplat Energy’s Acquisition of ExxonMobil’s Nigerian Assets Gets Green Light from Federal Government
The Nigerian government has given the go-ahead for Seplat Energy Plc to purchase ExxonMobil’s onshore assets in the country. The deal, valued at $1.28 billion, has received the necessary ministerial approval, paving the way for Seplat Energy to acquire a significant stake in Nigeria’s oil and gas industry.
According to Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the ministerial approval was secured following a prolonged regulatory delay that lasted over two years. Komolafe made the announcement at the NUPRC’s 3rd Anniversary event in Abuja on Monday, as reported by Channels Television.
Seplat Energy has expressed its excitement about the deal, stating that it is “delighted to announce” the approval. In a statement, the company thanked President Bola Ahmed Tinubu for granting the approval and acknowledged the support of various ministries and regulators involved in the transaction.
The acquisition will see Seplat Energy take ownership of a 40% stake in four oil mining leases, as well as key infrastructure, including the Qua Iboe export terminal and a 51% stake in the Bonny River natural gas liquids recovery plant. These assets were previously owned by Exxon’s local subsidiary, Mobil Producing Nigeria Unlimited.
The approval comes after President Tinubu indicated on October 1 that the final approval would be granted within days, following clearance from the regulatory body. With the green light from the government, Seplat Energy is set to strengthen its position in Nigeria’s oil and gas industry.
While this deal marks a significant milestone for Seplat Energy, it also highlights the challenges faced by companies operating in Nigeria’s oil and gas sector. The prolonged regulatory delay has shown that doing business in the country can be complex and time-consuming. Nevertheless, the approval of this deal demonstrates the government’s commitment to supporting foreign investment and promoting economic growth.
