Nigeria has officially approved the sale of ExxonMobil’s onshore assets to Seplat Energy, marking the conclusion of a $1.28bn deal that has been in the pipeline for over two years. The sale, which was first agreed in February 2022, finally received the necessary regulatory and ministerial approvals following significant delays.
On October 1, President Bola Tinubu announced that the transaction would soon be cleared, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the approval days later. Speaking at an event in Abuja, NUPRC CEO Gbenga Komolafe declared that the ministerial sign-off had been granted, paving the way for the completion of the sale.
Seplat’s new holdings
Under the terms of the agreement, Seplat Energy will acquire a 40 percent stake in four oil mining leases, as well as key associated infrastructure. This includes the Qua Iboe export terminal and a 51 percent stake in the Bonny River natural gas liquids recovery plant, previously owned by Mobil Producing Nigeria Unlimited, ExxonMobil’s local subsidiary.
The deal comes as international oil majors operating in Nigeria, Africa’s largest oil exporter, continue to shift their focus away from onshore operations. Issues such as oil theft and pipeline sabotage have plagued onshore activities, prompting companies like ExxonMobil to redirect their attention and investments towards deep offshore projects, which are seen as more secure and profitable.
Exodus from onshore oil
ExxonMobil is not alone in retreating from Nigeria’s onshore oil fields. Other major players have also divested their assets in recent months. In July, the NUPRC approved the sale of Eni’s onshore holdings to Oando, while Equinor sold its assets to the new entrant, Project Odinmim.
In response to the shifting industry landscape, the Nigerian regulator has moved to streamline the process of asset transfers. In May, the NUPRC introduced measures to speed up approvals for oil majors looking to sell their assets, on the condition that they take full responsibility for oil spills and compensate affected communities rather than waiting for government intervention.
Seplat Energy’s acquisition of ExxonMobil’s assets signals a new chapter in Nigeria’s energy sector as local companies take on a greater share of onshore operations.
