Nigeria Approves Sale of Exxon Mobil's Onshore Assets to Seplat Energy

ABUJA (Reuters) – Nigeria has approved the sale of Exxon Mobil Corp (NYSE:XOM)'s onshore assets to Seplat Energy, according to the chief executive officer of the country's upstream regulator on Monday. This decision comes more than two years after the $1.28 billion deal was initially agreed upon.

The sale had been under scrutiny while awaiting regulatory approval since it was first announced in February 2022.

President Bola Tinubu stated on October 1 that the deal would receive ministerial approval in just a few days after receiving clearance from the regulator.

Nigerian Upstream Petroleum Regulatory Commission (NUPRC) CEO Gbenga Komolafe confirmed on Monday at an event in the capital Abuja that the ministerial approval had now been granted.

Under the agreement, Seplat will own 40% of four oil mining leases and the associated infrastructure, which includes the Qua Iboe export terminal. Additionally, Seplat will hold a 51% stake in the Bonny River natural gas liquids recovery plant, previously owned by Mobil Producing Nigeria Unlimited, Exxon's local unit.

Oil majors in Nigeria, Africa's largest oil exporter, have been retreating from onshore operations due to issues like theft and sabotage, opting instead to focus future investments on newer and more lucrative deep offshore fields.

In July, the NUPRC approved the sale of onshore assets from Eni's local unit to Oando and another from Equinor to newcomer Project Odinmim.

The regulator, in May, offered faster approvals for pending asset sales by oil majors if they agreed to take responsibility for oil spills and provide compensation to affected communities, instead of waiting for authorities to determine liability.