Seplat Energy is pushing for a swift conclusion to its $1.28 billion acquisition of ExxonMobil’s Nigerian shallow water oil assets, following notification that NNPC has ceased its legal challenge to the deal. Initially, NNPC contested Exxon’s sale, asserting its right of first refusal, which complicated regulatory approvals.
In a statement released on Friday, Seplat Energy acknowledged the progress made through cooperative efforts with stakeholders and expressed commitment to engaging diligently with all relevant parties, including the government, to expedite the acquisition’s finalization.
An NNPC spokesperson was unavailable for immediate comment on the development.
Analysts have highlighted that the Exxon-Seplat transaction could inject crucial capital into Nigeria’s oil sector, potentially bolstering production levels. Moreover, it may signal to investors that similar transactions, like Shell’s recent asset sale to Renaissance, are likely to receive regulatory clearance.
Nigeria, the largest oil producer in Africa, heavily relies on crude oil for over 90% of its foreign exchange earnings and about half of its budget. However, output has dwindled due to insufficient investment and theft.
Major oil companies in Nigeria, such as Shell and TotalEnergies, have been divesting from onshore shallow water operations to focus on deepwater drilling endeavors.
