In a recent development, Gbenga Komolafe, the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has disclosed that the long-awaited asset sale deal between ExxonMobil and Seplat is poised for conclusion within the next fortnight.
After enduring a two-year delay since its initial agreement, the $1.28 billion transaction has been pending regulatory approval since 2022. Komolafe informed Reuters that both companies would be summoned to a pivotal meeting scheduled for Friday, where the decisive approval would be deliberated upon.
“Subject to the outcome of the meeting, consent could be given in less than two weeks from the date of the meeting,” stated Komolafe.
The NUPRC is set to present the companies with two distinct options, mutually exclusive, which if accepted, would pave the way for the approval of the deal, Komolafe explained. Although he did not elaborate on these options, he emphasized the legal obligation to allocate funds for decommissioning, host community development, and environmental remediation.
“As a commission, we don’t want our nation to carry unwarranted financial burdens arising from the operations of the assets over time by the divesting entities,” he emphasized.
Both ExxonMobil and Seplat declined to comment on the matter.
Nigeria, heavily reliant on oil for over 90% of its foreign exchange and half its budget, has witnessed a decline in output in recent years due to underinvestment and theft. The departure of oil majors like Shell and TotalEnergies from onshore shallow water operations, citing security concerns such as theft and sabotage, has encountered regulatory obstacles.
Analysts anticipate that the approval of the ExxonMobil-Seplat deal could infuse much-needed capital into Nigeria’s oil sector, potentially boosting oil output. Additionally, it would signal to investors the likelihood of similar deals, such as Shell’s asset sale to Renaissance in January, receiving regulatory assent.
Former President Muhammadu Buhari initially greenlit the transaction, only to retract his consent shortly after the oil regulator’s refusal to sign off. President Bola Tinubu, who assumed office last year, has prioritized attracting investment as a key agenda.
