Seplat Energy Plc is dedicated to acquiring Nigerian oil and gas assets from ExxonMobil Corporation, despite a year-long delay.
The company, listed in Lagos and London, hopes that President Bola Tinubu, the new leader of Africa’s largest crude producer, will approach the deal differently from his predecessor, who initially approved the transaction but later reversed the decision.
Seplat’s CEO, Roger Brown, expressed continued interest in the assets and described them as a game-changing operation.
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The deal, announced in February 2022, involves Seplat paying $1.3 billion for an Exxon unit holding a 40% operating stake in four shallow-water licenses. If completed, the transaction would significantly increase Seplat’s oil output to over 130,000 barrels per day, making it one of the largest divestments in Nigerian history.
Former President Muhammadu Buhari initially endorsed the sale but later withdrew approval after the country’s energy regulator rejected it. Seplat extended the agreement with Exxon to allow more time for finalizing the transaction just before Buhari stepped down. The state-owned Nigerian National Petroleum Company Limited (NNPC), which owns 60% of the permits, opposed the sale and sued Exxon, claiming the right to acquire the blocks itself.
Seplat argues that it is acquiring a subsidiary, not licenses, and Exxon shares the same interpretation. The article also mentions that early signals from the Tinubu administration indicate support for the deal, as Tinubu met with Exxon executives early in his tenure and expressed efforts to collaborate with key players in the oil sector.
Seplat sees hidden value in the natural gas within the blocks, particularly for export.
Tinubu’s meeting with Exxon officials took place at the State House in Abuja, and it followed a previous meeting between Exxon officials and former President Buhari at the United Nations General Assembly in September of the previous year. Tinubu mentioned on Twitter that the meeting aimed to ensure collaboration among stakeholders in the oil and gas sector and promote competition in the industry.
