‘We’re optimistic’ — NUPRC says ExxonMobil-Seplat deal will sail through

Gbenga Komolafe, chief executive officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says the agency is optimistic that the sale of assets by ExxonMobil to Seplat Energy will move forward. 

Speaking on the sidelines of the Africa Oil Week on Wednesday, the NUPRC boss said the commission was ready to take necessary steps to ensure the deal was completed. 

“We are very optimistic that parties to the transaction will go back, look at the position of the regulator and come back by abiding by the provisions of Nigerian laws and the right thing will be done,” Reuters quoted Komolafe as saying. 

Komolafe said ExxonMobil “did not route the transaction” in line with the provisions of its joint operating agreement. 

However, he said once ExxonMobil has made proper agreements with its joint-venture partners in the assets, “the regulator will do what it needs to.”

On his part, Roger Brown, CEO of Seplat Energy, said: “We have very good relationships with the regulator and that is why it takes time and the NNPC is a partner to us and we want to respect the partnership.”

Described as the first post-PIA acquisition deal, Seplat Energy plans to acquire Mobil Producing Oil assets from ExxonMobil for $1.3 billion. 

The NUPRC, in May 2022, had declined to approve the proposed acquisition due to “overriding national interest”.

Also, in August 2022, former President Muhammadu Buhari reversed his authorisation for the acquisition of ExxonMobil Corporation assets by the company — a few days after his initial approval.

Commenting on the delay in the approval of the acquisition, Heineken Lokpobiri, minister of state for petroleum resources (oil), said the federal government is handling the divestment of international oil companies (IOCs) on a case-by-case basis.