Iran Energy News Oil, Gas, Petrochemical and Energy Field Specialized Channel
Related Articles
Nigeria’s government is set to approve within days the proposed $1.3-billion sale of ExxonMobil’s shallow water assets to local firm Seplat, Nigerian President Bola Tinubu said on Tuesday.
The U.S. supermajor announced two years ago its intention to sell its shallow water business in Nigeria to Seplat, the biggest Nigerian energy company by market value, in a $1.3 billion deal.
The transaction has been stuck at the regulatory approval level for months and Exxon has yet to receive full clearance for the asset sale.
Earlier this year, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved the proposed sale of Nigerian Agip Oil Company Ltd (NAOC Ltd), Eni’s wholly-owned subsidiary focusing on onshore oil and gas exploration and production in Nigeria, as well as power generation, to Oando PLC. The regulator has also given the green light to Equinor to sell its Nigerian business to Project Odinmim.
But approval of the Exxon deal has been dragging on.
Now the Nigerian president said in a televised speech to mark Nigeria’s Independence Day that the final green light for the Exxon deal is expected within days.
“The ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator,” Tinubu said, as quoted by Reuters.
NUPRC has yet to announce its go-ahead to the asset sale.
Despite selling its shallow water business, Exxon is committing new investments in Nigeria’s deepwater.
ExxonMobil has proposed a $10 billion investment in Nigeria’s deepwater oil resource development, Stanley Nkwocha, spokesman and senior special assistant to the Nigerian President, said last week.
“We’re working closely with the President’s office and the Special Adviser to the President to secure favorable fiscal arrangements that will make this significant investment possible,” said Shane Harris, chairman and managing director of ExxonMobil affiliates in Nigeria, as quoted by the press release from the presidency.
“Our commitment to Nigeria remains unwavering. As we celebrate 70 years of oil production and 8 billion barrels produced, we’re not retreating but refocusing our investments on deep-water opportunities,” Harris was further quoted as saying.
