President Muhammadu Buhari, who also holds the portfolio of oil, has okayed the acquisition of ExxonMobil’s Nigerian unit by Seplat Energy Offshore Limited.
President Muhammadu Buhari, who also holds the portfolio of oil, has okayed the acquisition of ExxonMobil’s Nigerian unit by Seplat Energy Offshore Limited.
A statement issued this week said that the approval was in line with Nigeria’s drive for foreign direct investment (FDI) in the energy sector. The deal is expected to support Nigeria in meeting its OPEC quota of 1.826 million barrels production and also mitigate the environment concerns.
The $1.28 billion deal was announced in February by Seplat, which is listed on the London and Nigerian stock exchanges. The company announced that its offshore unit had entered into a landmark Sale and Purchase Agreement to buy the entire share capital of Exxon’s Nigerian offshore shallow water business.
As per the agreement, Exxon and Seplat will operate the unit’s oil licenses, supporting Nigeria meet its OPEC production quota in the short term as well as develop gas resources in the area. Another proposal of up to $300 million based on the oil price and the average production of the unit, over a five-year period was also under consideration.
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