According to statements from Nigeria’s oil regulator to Reuters on Thursday, the long-awaited approval for ExxonMobil’s sale of Nigerian petroleum assets to local company Seplat could be finalized within the next two weeks.
The transaction, valued at $1.28 billion and pending regulatory approval since 2022, may see significant progress following a scheduled meeting on Friday, as indicated by Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Komolafe noted that pending the outcome of the meeting, approval could be granted within the mentioned timeframe.
NUPRC is poised to present the involved parties with two exclusive options critical for securing approval, focusing on vital aspects such as decommissioning funds, host community development, and environmental remediation, all mandated by law. The objective is to avert potential future financial liabilities on the nation arising from the operations of divested assets.
Seplat has refrained from providing comment on the matter, while ExxonMobil has not yet responded.
Industry analysts foresee the approval as a catalyst for attracting essential investment into Nigeria’s petroleum sector, which has witnessed a decline in production during the prolonged approval period.
Previously, former Nigerian President Muhammadu Buhari had initially endorsed the transaction, only to retract consent shortly after when approval was withheld by the oil regulator.
President Bola Tinubu, who assumed office last year, has underscored the priority of attracting investments into the sector as part of broader economic development initiatives.