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Exxon Mobil’s (NYSE:XOM) $1.3B sale of its Nigerian shallow water enterprise to Seplat Vitality (OTCPK:SEPLF) was overruled Tuesday by the nation’s petroleum regulator, which stated its earlier rejection of the deal stays in place.
Nigerian President Muhammadu Buhari had accredited the transaction, saying the sale of 4 permits by Exxon to Seplat would convey “intensive advantages” to the nation’s power business.
The top of the Nigerian Upstream Petroleum Regulatory Fee stated laws handed final yr made the physique “the only regulator in coping with such issues.”
A profitable sale would mark Exxon’s (XOM) its exit from onshore and shallow water actions in Nigeria.
Oil majors working in Nigeria, together with Shell and TotalEnergies, have stated they need to exit shallow water operations, citing issues over disruptions by native communities and a desire for deepwater drilling.
Seplat Vitality (OTCPK:SEPLF) had agreed in February to purchase the property for $1.3B plus as a lot as $300M in contingent consideration.
