ExxonMobil/Seplat divestment to get ministerial approval soon- Tinubu

President Bola Tinubu has announced that the divestment transactions involving ExxonMobil and Seplat will soon receive ministerial approval. He made this statement during his Independence Day address, highlighting that the Nigerian Upstream Petroleum Regulatory Commission has already greenlit the divestment process in accordance with the Petroleum Industry Act.

Tinubu emphasized that this divestment follows the same procedural framework as other approved transactions within the sector. He reiterated his administration’s commitment to fostering a free enterprise environment, ensuring both open entry and exit for investors while upholding the integrity of the nation’s regulatory frameworks.

“This principle underpins the divestment transactions in the upstream petroleum sector, and I am dedicated to improving the industry’s prospects,” he stated. “Accordingly, the ExxonMobil-Seplat divestment will receive ministerial approval in the coming days, having been finalized by the NUPRC in line with the Petroleum Industry Act. This process aligns with how we handle other qualified divestments in the sector.”

The President noted that this move is expected to invigorate the industry and enhance oil and gas production, ultimately benefiting the economy.

The divestment deal between Seplat and ExxonMobil has faced delays for over two years. On July 12, 2022, reports indicated that the Nigerian National Petroleum Company Limited had obstructed ExxonMobil’s asset sale to Seplat, following a court ruling that temporarily prevented the transaction.

Seplat had initially agreed to purchase the U.S. oil giant’s subsidiary for at least $1.28 billion in February, but the NNPC sought to intervene and take control of the permits, leading to legal disputes. However, a settlement was reached earlier this year when the NNPC lifted the court injunction, enabling the sale to proceed