ExxonMobil’s Nigerian asset sale nears approval

ExxonMobil’s sale of Nigerian petroleum assets to Seplat, a Nigerian company, may receive approval within two weeks, according to the country’s oil regulator speaking to Reuters on Thursday.

The $1.28 billion transaction, awaiting regulatory approval since 2022, could see progress after a meeting scheduled for Friday, as stated by Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Komolafe mentioned that following the meeting’s outcome, consent might be granted within the mentioned timeframe.

NUPRC plans to offer the involved parties two exclusive options, pivotal for the deal’s approval, focusing on decommissioning funds, host community development, and environmental remediation, as required by law. The aim is to prevent future financial burdens on the nation from the divested assets’ operations.

Seplat declined to comment, and Exxon did not provide an immediate response.

Analysts anticipate the approval would attract crucial investment into Nigeria’s petroleum sector, addressing the decline in production during the pending period.

Previously, former Nigerian President Muhammadu Buhari initially approved the transaction but withdrew consent shortly after when the oil regulator withheld approval.

President Bola Tinubu, who assumed office last year, prioritises attracting investments into the sector.