The state-owned Nigerian National Petroleum Company (NNPC) and the US’ ExxonMobil have agreed on a settlement deal for a planned US$1.28bn asset divestment deal from the US major. The two companies have agreed that ExxonMobil will be able to sell its shallow water business in Nigeria to Seplat Energy. The deal had suffered several setbacks in the past.
In February 2022, ExxonMobil entered into a Sale and Purchase Agreement (SPA) with Seplat Energy to sell its entire shallow water business in Nigeria, which produced 95 kboe/d in 2020 (92% liquids). However, NNPC asserted a right of first refusal on the deal, arguing it has pre-emptive rights to the assets as a joint-venture partner. In August 2022, The Nigerian government had reversed its authorisation of Seplat Energy’s takeover of ExxonMobil’s assets, only several hours after approving it. Indeed, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had notified ExxonMobil the deal could not go through. Under the Petroleum Industry Act, which was approved in 2021, a holder of a petroleum exploration licence is not allowed to transfer it without permission from the NUPRC.