Executive Secretary of the Nigeria Upstream Petroleum Regulatory Council (NUPRC), Gbenga Komolafe, states that if parties accept two mutually exclusive options regarding decommissioning and host community rights, the Federal Government may approve ExxonMobil’s asset sale to Seplat in less than two weeks.
He would not, however, elaborate on the precise options put forth to the participants in the transaction.
According to the NUPRC Executive Secretary, Reuters, a meeting between the representatives of the two firms is scheduled for this Friday, and the outcome will decide whether or not the agreement is approved.
“Consent could be given in less than two weeks from the date of the meeting, subject to the outcome of the meeting,” he stated.
As a commission, we don’t want our country to bear unnecessary financial burdens.
Seplat agreed to pay roughly $1.28 billion to buy the assets of Mobil Producing Nigeria Unlimited in February 2022. The deal comprises the acquisition of the whole offshore shallow water operation of ExxonMobil Nigeria.
In his capacity as Minister of Petroleum Resources, former President Buhari authorised the deal as required by law, claiming that it aligned with the country’s goal of luring investment into the oil and gas sector.
The NUPRC’s Executive Secretary, Gbenga Komolafe, refused to sign off on the agreement after the President gave his permission, claiming that the commission is the only authority that regulates such affairs.
Due to the back and forth over the acquisition that resulted from this, investment in the disputed assets has been delayed, throwing a wrench in the deal.
