ExxonMobil is set to finalize the sale of its shares in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc for $1.28 billion, following official approval from the Nigerian government. Seplat, a prominent Nigerian energy company listed on both the Nigerian Exchange and the London Stock Exchange, is gearing up to take over ExxonMobil’s assets in a deal that promises to reshape the landscape of the country’s energy sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the government’s consent for the divestment, allowing ExxonMobil to transfer its assets to Seplat. Engr. Gbenga Komolafe, Chief Executive of NUPRC, revealed that the transaction received official endorsement, clearing the path for the acquisition to proceed.
In response to the approval, ExxonMobil’s Regional Communications Manager for Africa, Oge Udeagha, expressed optimism about the next steps. “We welcome the regulator’s announcement and look forward to formally receiving the Ministerial Consent as we work toward the conclusion of the sale,” Udeagha said in an email to Vanguard.
Seplat Energy echoed this enthusiasm. In a statement, Chioma Afe, Director of External Affairs & Social Performance at Seplat Energy, confirmed that the company is pleased to move forward with the acquisition. She noted, “Seplat Energy sincerely thanks President Bola Tinubu for granting this approval and appreciates the support and diligence of the various ministries and regulators for all the work on this transaction.” Afe further added that additional updates will be provided as the deal progresses, in accordance with regulatory requirements.
This acquisition is seen as a significant milestone for Seplat, strengthening its foothold in Nigeria’s oil and gas industry. It aligns with the company’s strategy to expand its operations and enhance energy production in Nigeria.
During the launch of the NUPRC’s “Project 1MMBOPD Initiative,” themed “NUPRC@ 3: Transformation, Innovation, and Excellence,” Engr. Komolafe highlighted the importance of divestments in global business practices. He reaffirmed Nigeria’s commitment to facilitating a free market environment, as emphasized by President Bola Tinubu in his October 1, 2024 speech, which promoted the philosophy of free entry and exit in the business sector.
Komolafe also shared that out of five divestment applications received by the Commission, four successfully passed the regulatory review and secured ministerial consent. These transactions include ExxonMobil’s sale to Seplat Energy, as well as other key divestments such as Equinor Nigeria Energy Company’s assets being sold to Project Odinmin Investments Limited, Nigerian Agip Oil Company’s divestment to Oando Petroleum, and TotalEnergies EP Nigeria’s deal with Telema Energies Nigeria.
The NUPRC remains committed to increasing oil production and boosting national revenue. Komolafe reminded stakeholders that earlier this year, the Commission issued a Regulatory Action Plan to enhance operational efficiency in the upstream sector. This plan laid the foundation for the “Project 1 Million Barrels of Oil Per Day Initiative,” an ambitious project aimed at ramping up Nigeria’s oil production capacity, which was formally launched during the event.
As the ExxonMobil-Seplat deal edges closer to completion, it is expected to have a significant impact on Nigeria’s oil and gas sector, reinforcing Seplat’s role as a key player while advancing the government’s goals for increased production and energy security.
