The Nigerian National Petroleum Company (NNPC) Limited has signed settlement agreement deal with ExxonMobil Nigeria, on the proposed divestment of 100 percent interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.
The $1.28 billion deal, first announced in February 2022, has been entangled in regulatory hurdles for over two years.
“Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. signed regarding the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited,” NNPC said on Thursday morning.
This news comes as a major win for Seplat, which has been eager to expand its portfolio and solidify its position as a dominant player in Nigeria’s oil industry, Africa’s largest oil producer.
The approval process, however, has been far from smooth.
NNPC initially expressed interest in acquiring the ExxonMobil stake itself.
Additionally, the NUPRC rejected Seplat’s deal in May 2022 and even former President Muhammadu Buhari reversed his initial approval in August 2022, citing “overriding national interest.”
