Nigeria Approves Exxon’s $1.3 Billion Asset Sale to Seplat, Rejects Shell’s Onshore Deal

Written on 21/10/2024
World Oil

Nigeria has approved Exxon Mobil Corp.'s $1.3 billion sale of its onshore oil and gas assets to local energy company Seplat Energy Plc, ending over two years of delays.

The decision marks significant progress for Exxon but contrasts with the rejection of a similar sale by Shell Plc, which will now have to rethink its exit plans from the West African nation's onshore oil operations.

The announcement was made by Gbenga Komolafe, CEO of the Nigerian Upstream Petroleum Regulatory Commission, during a conference in Abuja.



President Bola Tinubu, who is also the minister of petroleum, signaled in his Independence Day speech on Oct. 1 that it would get approval within a matter of days.

The sale will free Exxon Mobil to focus on expanding its offshore assets in Africa’s largest crude producer. The company last month said it is considering investing as much as $10 billion in that business in the coming years. Seplat has previously said that acquiring Exxon’s assets would almost quadruple the company’s oil output to more than 130,000 bpd.

A similar transaction by Shell Plc to sell its onshore assets to a consortium of local companies for more than $1.3 billion failed to get approval, Komolafe said. 

A Shell spokesperson wasn’t immediately able to comment.

The consortium, known as Renaissance, is formed of exploration and production companies ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, all of which are based in Nigeria. Its CEO Tony Attah is a former Shell employee with 30 years of experience in the oil and gas industry.

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