The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that it has received the necessary consent from Nigeria’s Minister of Petroleum Resources, Bola Ahmed Tinubu, who also serves as the country’s president.
This approval paves the way for Seplat Energy to proceed with its plans to acquire the shallow water assets owned by Mobil Producing Nigeria Unlimited (MPNU).
Seplat first announced its intention to purchase ExxonMobil’s Nigerian operations in November 2021 and reaffirmed its commitment in February 2022. However, the closing date for the transaction has been postponed twice due to various factors.
In May 2023, the parties revised the share sale and purchase agreement (SSPA) to stipulate that ExxonMobil would receive a portion of Seplat’s profits generated between the transaction’s effective economic date and its completion.
A year later, Seplat sought yet another extension to address specific legal matters and secure the necessary regulatory approvals, while leaving other aspects of the transaction unchanged.
In a related development, ExxonMobil has also taken steps to enhance its carbon capture and storage (CCS) portfolio by signing a lease agreement with the Texas General Land Office (GLO) for 271,000 acres of offshore CO2 storage in Texas waters, indicating the company’s commitment to sustainability and environmental initiatives.
Meanwhile, Shell Plc’s $1.3 billion deal to sell its onshore Nigerian subsidiary, Shell Petroleum Development Company Ltd (SPDC), has encountered a significant setback.
The NUPRC raised concerns about the buyer’s ability to manage the assets, stalling the sale of one of Shell’s key onshore operations in Nigeria.
In January 2024, Shell announced plans to sell its 15 onshore oil mining leases and three shallow-water operations, all managed through SPDC as part of its strategy to exit onshore oil production in Nigeria and focus on more lucrative ventures such as deep-water offshore fields.
