Seplat Energy is pushing towards the finalization of its $1.28 billion acquisition of ExxonMobil’s Nigerian shallow water oil assets.
According to Reuters, this announcement follows news that the Nigerian National Petroleum Company Ltd. (NNPC) has halted its legal challenge to the deal. NNPC had initially contested the sale, claiming a first right of refusal, and the acquisition was further delayed by regulatory issues.
“Seplat Energy commends the open cooperation and progress achieved by all stakeholders and will diligently engage with all key stakeholders, including the government, in progressing towards a swift completion of the acquisition,” Seplat stated.
Reuters says analysts suggest that the deal between Exxon and Seplat could bring significant capital into Nigeria’s oil sector, potentially increasing output. It also indicates that similar transactions, such as Shell’s asset sale to Renaissance in January, are likely to receive regulatory approval.
As Africa’s largest oil producer, Nigeria depends on crude oil for more than 90% of its foreign exchange and half of its budget. However, oil output has been declining in recent years due to underinvestment and theft.
Major oil companies, including Shell and TotalEnergies have been shifting focus from onshore and shallow water operations to deepwater drilling.
