After months of delays, Nigerian regulators approved the sales of Eni SpA and Equinor ASA units to local firms as international majors look to divest Nigerian operations.
The acquisitions of Eni’s Nigerian Agip Oil Company Ltd. by Oando and those of Equinor by Project Odinmim Investments Ltd. were announced at an industry event Wednesday in Abuja.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved the proposed sale and also gave the green light to Equinor to sell its Nigerian business to Project Odinmim, NUPRC chief executive Gbenga Komolafe said.
However, the NUPRC has yet to approve divestment deals proposed by U.S. supermajor ExxonMobil and UK-based giant Shell.
Earlier this year, ExxonMobil, Shell, Eni, and Equinor awaited government clearance for their sales of oil assets. The protracted approval process has frustrated both buyers and sellers, hampering the rebound of Nigeria’s oil production. Domestic oil producers and buyers hope that the approvals will provide clarity and help revive oil production in the country.
ExxonMobil plans to sell its shallow water business in Nigeria to Seplat, the country’s largest energy company. At the same time, Shell announced its intention to exit Nigeria’s onshore oil and gas industry earlier this year but plans to remain a major investor in the country’s energy sector through its deepwater and Integrated Gas businesses.
