Nigeria Approves Exxon’s $1.3B Onshore Oil Asset Sale to Seplat
TLDR
- Nigeria approves Exxon Mobil's $1.3 billion sale of onshore assets to Seplat Energy Plc, accelerating offshore expansion plans.
- Shell's $1.3 billion onshore asset sale to local consortium rejected, led by ND Western, Aradel Energy, and Waltersmith.
- Exxon Mobil to focus on $10 billion investment in Nigerian offshore operations, significantly boosting Seplat's oil production capacity.
Nigeria has approved Exxon Mobil Corp.'s $1.3 billion sale of its onshore oil and gas assets to Seplat Energy Plc, ending a two-year delay in concluding the deal. However, the Nigerian government rejected a similar transaction by Shell Plc to sell its onshore assets to a local consortium for the same amount.
The approval, announced by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), allows Exxon Mobil to focus on expanding its offshore operations in Nigeria, where it plans to invest up to $10 billion. Seplat’s acquisition will nearly quadruple its oil output to more than 130,000 barrels per day.
Meanwhile, Shell’s deal to sell its onshore assets to the consortium known as Renaissance was rejected. The consortium comprises Nigerian companies including ND Western, Aradel Energy, and Waltersmith.
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Key Takeaways
Nigeria’s approval of Exxon Mobil’s sale to Seplat marks a significant shift in the nation’s energy landscape, boosting Seplat's production capacity. In contrast, Shell’s stalled deal highlights the challenges foreign companies face in divesting from Nigeria’s onshore oil sector. Shell has been seeking to exit its onshore operations for over three years due to challenges, including environmental disputes and oil theft, but is still in discussions with the government to finalize the transaction.
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