Seplat Energy Plc has received ministerial approval to acquire Exxon Mobil’s Nigerian oil assets for $1.28 billion.
According to a press statement seen by Reuters, the ministerial approval was given earlier today by President Muhammadu Buhari, who also doubles as Minister of Petroleum Resources in Nigeria.
Seplat Energy, a leading indigenous oil exploration company listed on the Nigerian Exchange and the London Stock Exchange, first announced the deal in February this year.
Asides from the $1.28 billion up-front payment Exxon Mobile would be getting for the deal, the company would also get an additional $300 million from Seplat over a five-year period. However, the additional consideration would depend on factors such as oil price and the average production of the oil assets during the period.
Exxon Mobil had explained that the divestment, which includes more than 90 shallow-water oil assets and 300 producing wells, was aligned with its new investment strategy.
“This sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations. We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximize the value from our deep-water operations,” Exxon Mobile’s President for Upstream Oil and Gas, Liam Mallon, explained.
Recall that Exxon Mobile is not the only oil major that is currently in the process of divesting from Nigeria. Business Insider Africa reported in May that French multinational oil and gas firm TotalEnergies was planning to sell its oil assets in the West African country.
Shell Plc also has an ongoing process to sell its 30% stake in the joint venture Shell Petroleum Development Company of Nigeria (SPDC).
