Nigeria set to approve sale of ExxonMobil assets to Seplat

ABUJA, October 2, 2024 – The sale of ExxonMobil’s oil and gas assets to Nigeria’s Seplat Energy is imminent, President Bola Tinubu said in a speech on Tuesday.

According to President Tinubu, the regulator has approved the deal, and it will receive ministerial approval in a matter of days. ExxonMobil and Seplat had signed the sale agreement in February 2022, but Nigerian NOC NNPC legally challenged the sale, stalling the transaction. The NOC and ExxonMobil reached an agreement in May 2024, with a deal to sell the assets for USD 1.28 billion.

The sale will nearly quadruple Seplat’s output to more than 130,000 bopd. President Tinubu said that the deal will lead to increased oil and gas production and comes at a moment where the government is looking to boost its output.

ExxonMobil’s asset sale does not entail its divestment from the country. The Nigerian government reported that it had a meeting with the company on the sidelines of the UN General Assembly in September 2024 where ExxonMobil proposed a USD 10-billion investment in Nigeria’s offshore operations.

Regarding ExxonMobil’s future in Nigeria, Shane Harris, chairman and managing director of ExxonMobil Affiliates in Nigeria, stated, “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 deepwater opportunities.”

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