Seplat Energy is pressing ahead to swiftly finalize its $1.28 billion acquisition of ExxonMobil’s Nigerian shallow water oil assets, following NNPC’s withdrawal of its legal challenge to the deal.
Initially contested by NNPC citing a right of first refusal and further delayed by regulatory issues, Seplat praised stakeholders for their cooperation and pledged to engage diligently with all relevant parties, including the government, to expedite the acquisition process.
An NNPC spokesperson did not immediately comment on the development.
Analysts anticipate the Exxon-Seplat transaction to inject crucial capital into Nigeria’s oil sector, potentially boosting output and signaling regulatory favor for similar deals, such as Shell’s recent asset sale to Renaissance.
Nigeria, Africa’s largest oil producer, heavily depends on crude oil for over 90% of foreign exchange and half of its budget, but output has declined due to underinvestment and theft.
Oil majors like Shell and TotalEnergies are shifting focus from onshore shallow water operations to deepwater drilling.