ExxonMobil’s asset sale to Seplat Energy could be finalised in weeks, Nigeria’s oil regulator told reporters on Thursday, putting an end to a two-year standoff since the deal was initially agreed.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Gbenga Komolafe said the companies would be invited to a meeting on Friday to expedite action on the assets divestment. The $1.28 billion transaction has been lingering since 2022
“Subject to the outcome of the meeting, consent… could be given in less than two weeks from the date of the meeting,” he said.
Mr Komolafe disclosed that the two International Oil Companies (IOC) would be presented with two “mutually exclusive options” and if accepted, would consent to the deal.
Without fully disclosing the options, he however noted that as part of the process, funds needed to be set aside for host community development, decommissioning, and abandonment issues as well as environmental rehabilitation.
“As a commission, we don’t want our nation to carry unwarranted financial burdens arising from the operations of the assets over time by the divesting entities,” he said.
Nigeria depends on the commodity for over 90% of its foreign exchange earnings but output has dwindled due to lack of investments and theft.
Experts say consummating the deal would inject the much-needed investment into Nigeria’s oil industry, potentially leading to increased oil output.
Former President, Muhammadu Buhari initially backed the deal but stepped back after the oil regulator refused to sign off.