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The Federal Government of Nigeria is expected to make a decision on ExxonMobil’s $1.28 billion asset sale to Seplat in less than two weeks, according to the Executive Secretary of the Nigeria Upstream Petroleum Regulatory Council (NUPRC), Gbenga Komolafe.
The decision hinges on two mutually exclusive options concerning decommissioning and host community rights, which will be discussed in a meeting between representatives of both companies on Friday.
Komolafe emphasized the importance of not burdening the nation with financial responsibilities arising from the operations of the assets over time by the divesting entities.
The deal, which involves the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business, was initially approved by former President Buhari in his capacity as Minister of Petroleum Resources in February 2022.
However, the NUPRC Executive Secretary declined to sign off on the deal, asserting that the commission is the sole regulator on such matters.
This led to a series of back and forth, halting investment in the assets in question and impacting other potential deals in the oil and gas industry.
Seplat’s CEO Roger Brown has expressed determination to complete the acquisition, describing it as a “game-changing operation” and hoping for a more favorable outcome under the new President Bola Tinubu administration.
The outcome of the meeting between the parties involved in the deal will determine the approval status of the transaction.
The Federal Government’s decision will be closely watched by industry stakeholders and investors, as it could have significant implications for future oil and gas deals in Nigeria.
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