In a major development, Nigeria has finally given the green light for the sale of Exxon Mobil Corp’s onshore assets to Seplat Energy after a long wait. This $1.28 billion deal has been in the works for over two years and is set to reshape the country’s oil industry landscape.
The sale, which has been under regulatory scrutiny since it was first announced in February 2022, has now received ministerial approval, according to Nigerian Upstream Petroleum Regulatory Commission (NUPRC) CEO Gbenga Komolafe. Seplat will now own 40% of four oil mining leases and associated infrastructure, as well as 51% of the Bonny River liquids recovery plant previously owned by Exxon’s local unit.
This move comes as oil majors in Nigeria are shifting their focus away from onshore operations towards deep offshore fields due to challenges like theft and sabotage. Other recent approvals by NUPRC include the sale of onshore assets by Eni’s local unit to Oando and Equinor’s assets to new entrant Project Odinmim.
The regulator has also incentivized faster approvals for asset sales by oil majors if they take responsibility for oil spills and compensate affected communities. This signals a new era of accountability and efficiency in the country’s oil sector.