$1.28B ExxonMobil-Seplat Deal Gains AEC Support, Signaling Nigeria’s Commitment to an Enabling Environment
CHIGOZIE AMADI
The Nigerian Federal Government has approved Seplat Energy’s acquisition of significant onshore assets from ExxonMobil’s local subsidiary, Mobil Producing Nigeria Unlimited, in a landmark deal.
ExxonMobil and Seplat Energy have secured approval from Nigeria’s Federal Government for a landmark $1.28 billion deal, marking a significant step forward in the country’s oil and gas sector. The African Energy Chamber (AEC) – as the voice of Africa’s energy sector – fully supports this transaction, which affirms Nigeria’s commitment to creating an enabling environment for large-scale investments and acquisitions in its energy industry.
Under the agreement, Seplat Energy has acquired significant onshore assets from ExxonMobil’s local subsidiary Mobil Producing Nigeria Unlimited, including a 40% interest in four oil mining leases and associated infrastructure, including the Qua Iboe oil terminal. Additionally, Seplat will assume a 51% stake in the Bonny River natural gas liquids recovery plant. These strategic additions are expected to significantly enhance Seplat’s production capacity and operational capabilities, solidifying its role as a major player in Nigeria’s upstream sector and elevating the influence of indigenous companies in the country’s broader energy development.
Moreover, the approval of the acquisition underscores Nigeria’s commitment to creating a more conducive environment for investment in the energy sector. Through a combination of reforms, regulatory improvements and fiscal incentives, Nigeria has been actively working to attract both local and international investors, fostering a climate where strategic transactions can thrive. The Seplat-ExxonMobil deal is one of several recent high-profile agreements that highlight Nigeria’s drive to revitalize its oil and gas industry. Similar transactions, such as Oando’s recent acquisition of Eni’s local subsidiary Nigerian Agip Oil Company, showcase the country’s efforts to build a more dynamic and competitive energy market and pave the way for increased private sector participation.
“The approval of the Seplat-ExxonMobil deal highlights Nigeria’s commitment to creating an enabling environment for optimizing upstream portfolios. It is a testament to the progress being made in streamlining Nigeria’s oil and gas industry and signals the growing confidence that international investors have in partnering with local companies. The AEC proudly supports this deal, which underscores the value of collaboration between global energy leaders and indigenous operators,” said NJ Ayuk, Executive Chairman of the AEC.
By enabling strategic transactions, Nigeria continues to position itself as a leading hub for energy development on the continent. As an advocate for Africa’s energy sector, the AEC believes this transaction represents a pivotal moment for the country’s energy future. The Chamber remains dedicated to supporting investments that contribute to the continent’s energy supplies and security, fostering partnerships that drive sustainable development across Africa’s oil and gas industry.
