Exxon Mobil's asset sale to Seplat Energy could be approved in less than two weeks, Nigeria's oil regulator told Reuters on Thursday, ending a two-year delay since the deal was first agreed.
The $1.28 billion sale in Africa's largest oil exporter has
awaited regulatory approval since 2022.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
chief Gbenga Komolafe told Reuters the companies would be invited to a meeting
on Friday.
"Subject to the outcome of the meeting, consent...
could be given in less than two weeks from the date of the meeting," he
said.
NUPRC would give the companies two mutually exclusive
options that, if accepted, would permit approval of the deal, Komolafe said.
He did not spell out what these options were, but said the
law requires money to be set aside for decommissioning, host community
development and environmental remediation.
"As a commission, we don't want our nation to carry
unwarranted financial burdens arising from the operations of the assets over
time by the divesting entities," he said.
Spokespeople for Exxon and Seplat declined to comment.
Africa's top oil producer relies on the commodity for more
than 90% of its foreign exchange and half its budget. But output has declined
in recent years due to underinvestment and theft.
Oil majors operating in Nigeria, including Shell and
TotalEnergies have exited their onshore shallow water operations, citing
security concerns, such as theft and sabotage, to focus on deepwater drilling.
Those moves have run into regulatory hurdles.
Analysts say approving the Exxon-Seplat deal would inject
much-needed capital into Nigeria's oil industry, potentially leading to
improved oil output, and also signal to investors that similar deals such as
Shell's asset sale to Renaissance in January are likely to get regulatory
assent.
Former Nigerian president Muhammadu Buhari initially
consented to the transaction, but withdrew that consent days later after the
oil regulator refused to sign off.
President Bola Tinubu, who took office last year, has made
attracting investment a key priority.
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