ExxonMobil's $1.28B Nigerian Asset Sale Deal Nears Completion

Exxon Mobil Corporation’s XOM asset sale deal with Seplat Energy in Nigeria could be approved in a few days.

On Tuesday, Nigeria’s President, Bola Ahmed Tinubu, said, “As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA.” 

The President reaffirmed his administration’s commitment to free enterprise, allowing free entry and exit in investments while upholding the integrity and effectiveness of regulatory processes.

President Tinubu emphasized that this principle guides divestment transactions in the nation’s upstream petroleum sector, with the government dedicated to positively transforming the country’s fortunes.

Notably, the $1.28 billion deal was first announced in 2022, and the companies have been waiting for regulatory approval since then.

The state oil company NNPC had earlier contested Exxon’s sale of the assets to Seplat, citing a purported first right of refusal and regulatory issues further delayed the deal.

In June 2024, Seplat Energy expressed that it had been informed about the termination of the court proceedings initiated by NNPCL against MPNU and its affiliates regarding the planned divestment of MPNU’s shares to Seplat Energy Offshore Limited (SEOL).

Last month, Exxon Mobil proposed a $10 billion investment in Nigeria’s deep-water oil operations.

Moreover, ExxonMobil intended to invest $1 billion annually in maintenance operations and an additional $1.5 billion to increase production by 50,000 barrels per day over the next few years.

Investors can gain exposure to XOM via EA Series Trust Strive U.S. Energy ETF DRLL and Westwood Salient Enhanced Energy Income ETF WEEI.

Price Action: XOM shares are up 2.15% at $119.72 at the last check Tuesday.

Photo: Del Henderson Jr. via Shutterstock

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