The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signaled that the sale of ExxonMobil’s Nigerian petroleum assets to Nigeria’s Seplat could receive approval in less than two weeks, according to an announcement made yesterday. This development follows a report by THISDAY indicating NUPRC’s efforts to expedite regulatory oversight on ongoing oil assets divestment by International Oil Companies (IOCs).
Upon conclusion of the pending transactions, Nigeria stands to augment its daily crude oil production volume by at least 700,000 barrels per day (bpd), potentially reaching approximately two million bpd by the end of the year.
In February 2022, Seplat Energy unveiled its acquisition of oil and gas assets belonging to Mobil Oil Producing Nigeria Unlimited (MPNU), marking the first major deal since the signing of the Petroleum Industry Act (PIA) by then-President Muhammadu Buhari in August 2021. Under the Sale and Purchase Agreement, Seplat Energy Plc agreed to acquire the entire share capital of MPNU for a purchase price of $1.283 billion, with an additional contingent consideration of up to $300 million.
The transaction encompasses the acquisition of ExxonMobil’s entire offshore shallow water business in Nigeria, poised to create one of the largest independent energy companies in the country.
The imminent approval of the sale underscores the regulatory commitment to facilitating investments and fostering growth in Nigeria’s oil and gas sector. It also reflects the potential for increased domestic production capacity, contributing to the nation’s economic development objectives.
Stakeholders and industry analysts anticipate that the completion of the transaction will not only strengthen Seplat Energy’s position in the Nigerian energy landscape but also stimulate further investments and advancements within the sector. As Nigeria continues to attract interest and investment in its oil and gas industry, the successful conclusion of such transactions underscores its resilience and attractiveness as a key player in the global energy market.
