NNPC Signs $1.28 Billion Settlement Agreement with ExxonMobil on Divestment to Seplat Energy

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The Nigerian National Petroleum Company (NNPC) Limited has finalized a settlement agreement with ExxonMobil Nigeria concerning the divestment of a 100% stake in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.

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The $1.28 billion deal, initially announced in February 2022, faced regulatory challenges for over two years. On Thursday morning, NNPC confirmed the agreement, involving Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc.

This development marks a significant victory for Seplat, which aims to expand its portfolio and reinforce its status as a leading player in Nigeria’s oil industry, the largest in Africa.

The approval process has been complicated. Initially, NNPC showed interest in acquiring ExxonMobil’s stake.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rejected Seplat’s deal in May 2022, and former President Muhammadu Buhari reversed his initial approval in August 2022, citing “overriding national interest.”

Further details are awaited.

Peter Anene, Business Editor
Peter Anene, Business Editorhttp://Naija247news.com
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