EXXONMOBIL AND SEPLAT DIVESTMENT NEARS COMPLETION AS PRESIDENT TINUBU CONFIRMS MINISTERIAL APPROVAL IMMINENT

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Olori Uwem

Active Member
Mar 18, 2024
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EXXONMOBIL AND SEPLAT DIVESTMENT NEARS COMPLETION AS PRESIDENT TINUBU CONFIRMS MINISTERIAL APPROVAL IMMINENT

In a key announcement during his Independence Day broadcast, President Bola Tinubu revealed that the long-awaited divestment of ExxonMobil’s assets to Seplat Energy is set to receive ministerial approval in the coming days. This development follows the Nigerian Upstream Petroleum Regulatory Commission's (NUPRC) approval of the transaction, in accordance with the Petroleum Industry Act (PIA).

Tinubu emphasized his administration’s commitment to fostering a free enterprise system while maintaining the integrity of the nation’s regulatory framework. He noted that the divestment, carried out similarly to other approved transactions in the sector, will enhance the oil and gas industry, spurring increased production and economic growth.

This deal, valued at $1.28 billion, has faced multiple delays. In 2022, the Nigerian National Petroleum Company (NNPC) temporarily blocked the sale, citing its interest in acquiring the assets itself. However, a settlement earlier this year cleared the way for Seplat to proceed with the purchase, marking a significant step forward.

Oil and gas experts, such as Prof. Wumi Iledare, have weighed in, advising that NNPC should consider selling its share of the joint venture to other firms, such as Dangote Oil Refinery, to avoid a joint venture with Seplat. While the president's announcement is seen as a positive move for the sector, some analysts argue that such matters should ideally be left to the regulatory body to avoid politicization.

With the conclusion of this deal expected soon, industry stakeholders are hopeful that this will boost the sector's dynamism and improve Nigeria's oil output.