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Nigeria approves Exxon oil asset sale, rejects Shell deal

Nigeria approved Exxon Mobil Corp.’s sale of its onshore oil and gas assets to domestic energy supplier Seplat Energy Plc, but rejected a similar deal by Shell Plc.

The decisions end a more than two-year delay to the conclusion of Exxon’s $1.3 billion deal, but stymies Shell’s plans for the West African nation.

The Exxon transaction has received ministerial consent, said Gbenga Komolafe, the chief executive officer of the Nigerian Upstream Petroleum Regulatory Commission at a conference in Abuja, the nation’s capital on Monday.

President Bola Tinubu, who is also the minister of petroleum, signaled in his Independence Day speech on Oct. 1 that it would get approval within a matter of days.

The sale will free Exxon Mobil to focus on expanding its offshore assets in Africa’s largest crude producer. The company last month said it is considering investing as much as $10 billion in that business in the coming years. Seplat has previously said that acquiring Exxon’s assets would almost quadruple the company’s oil output to more than 130,000 barrels per day.

A similar transaction by Shell Plc to sell its onshore assets to a consortium of local companies for more than $1.3 billion failed to get approval, Komolafe said.

A Shell spokesperson wasn’t immediately able to comment.

The consortium known as Renaissance, is formed of exploration and production companies ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin, all of which are based in Nigeria. Its CEO Tony Attah is a former Shell employee with 30 years of experience in the oil and gas industry.

Shell said last week in an emailed statement that it was engaged in ongoing talks with the government to sell the assets and will provide the regulator with all information needed to complete the approval process.

The rejection will be a setback for Shell, who has sought to exit the assets for more than three years as the operations have become increasingly difficult, with local communities accusing the company of being responsible for oil spills that have polluted their environment. The company has blamed many of these incidents on damage to infrastructure caused by oil theft.

 

Source: bloomberg.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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