President Bola Tinubu announced that the divestment transactions between ExxonMobil and Seplat will receive ministerial approval within days. This update was shared during his Independence Day broadcast on Tuesday, where he stated that the divestment process has already been approved by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in accordance with the Petroleum Industry Act (PIA).
Tinubu emphasized that this divestment process aligns with the same standards applied to other qualified divestments within the sector. He reiterated his administration’s commitment to fostering an environment of free enterprise, allowing for free entry and exit in investments, while upholding the integrity of the nation’s regulatory framework.
“The 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,” Tinubu stated. He added that this process has been executed similarly to other qualified divestments previously approved in the sector, promising positive changes for the industry.
The president noted that this move aims to enhance vibrancy and boost oil and gas production, which will have a beneficial impact on the Nigerian economy.
The divestment deal between Seplat and ExxonMobil has faced delays for over two years. In July 2022, reports indicated that the Nigerian National Petroleum Company (NNPC) had blocked the sale of ExxonMobil’s assets to Seplat. A court ruling temporarily prevented the asset transfer, as NNPC sought to take over the permits for itself, resulting in ongoing litigation.
However, a settlement agreement was reached earlier this year, allowing NNPC to lift the court injunction and paving the way for the asset sale to Seplat to be finalized. Seplat had previously agreed to acquire the U.S. oil major’s subsidiary for a minimum of $1.28 billion in February.
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