The head of Nigeria’s oil regulator told Reuters on Wednesday that he is “very optimistic” that Exxon Mobil’s (XOM.N) asset sale to Seplat Energy (SEPLAT.LG) can proceed.
The regulator rejected the $1.28 billion sale, which some in the industry claim is crucial to attracting much-needed investment into Nigeria’s oil and gas sector last year.
NUPRC CEO Gbenga Komolafe told Reuters on the sidelines of Africa Oil Week in Cape Town, “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.”
Komolafe stated that “the regulator will do what it needs to” once Exxon had properly negotiated the terms of the properties with its joint-venture partners.
The purchase might be completed this year, Seplat CEO Roger Brown told Reuters, adding that he was “hopeful” of this.
We have excellent working ties with the regulator, so it takes time. The NNPC is our partner and wants to treat that collaboration respectfully. He added that we are now beginning to approach the crucial stage in our attempt to fix the problem.
ExxonMobil did not respond right away. NNPC, the state-owned oil firm, had contested the sale, claiming it had first rights to the assets. On whether or not it made a purchase offer for the assets, NNPC has not made any public remarks.
90% of Nigeria’s foreign money and 50% of its budget come from petroleum, making it Africa’s largest oil exporter. However, owing to underinvestment and theft, production has decreased recently. Several global oil giants attempt to sell onshore properties, but such transactions have encountered legal and regulatory obstacles.
Last month, NNPC claimed that an Italian company’s subsidiary did not have permission before announcing a proposal to sell onshore oil assets to a local firm, Oando (OANDO.LG), which it claimed could have violated the conditions of a joint operating agreement.
