President Bola Tinubu announced today that the much-anticipated divestment of ExxonMobil’s Nigerian assets to Seplat Energy is poised to receive ministerial approval within days.
In his independent day speech, Tinubu emphasised the government’s commitment to facilitating a smooth transition for the deal, which has been a focal point in Nigeria’s economic strategy.
“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,” Tinubu said.
He added, “This was done in the same manner as other qualified divestments approved in the sector”.
Tinubu explained that the move will create vibrancy and increase oil and gas production, positively impacting Nigeria’s economy.
Read also: ExxonMobil’s $10bn in Nigeria’s deepwater asset to unlock 180,000 bpd
What you should know
The deal between Exxon Mobil Corporation and Seplat involved the takeover of ExxonMobil Nigeria’s offshore shallow water operations.
However, NNPC decided to invoke its Right of First Refusal (RFR) regarding the sale of these assets.
In May 2022, *the federal government declined to approve the transaction, citing overriding national interest among other reasons for its decision.
BusinessDay also reported that President Bola Tinubu later met with ExxonMobil president Liam Mallon and other executives, assuring them of a quick resolution of the agreement between ExxonMobil and Seplat.
This development marked a significant step in the ongoing efforts to conclude ExxonMobil’s divestment plan announced two years ago, which has been the subject of intense legal and regulatory scrutiny.
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