FG Speaks on Major Oil Deal as Nigerians Battle Fuel Scarcity

• Regulators in Nigeria said they plan to formally approve Exxon Mobil Corp.s sale of its oil and gas assets to Seplat Energy Plc
• Former president Muhammadu Buhari had approved the deal, but the regulator had complained, and the clearance was later withdrawn
• International oil corporations (IOCs) are growing their assets and portfolios deep offshore, not leaving the nation

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

After a pause that delayed the completion of a deal that was first announced in February 2022, Nigerian regulators stated they anticipate formally consenting to Exxon Mobil Corp.'s transfer of its oil and gas assets to Seplat Energy Plc within four months.

According to a statement released by the Upstream Petroleum Regulatory Commission on Monday, the licensing process ought to be finished within the allotted 120 days.

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In May, the official oil company of Nigeria said that it had come to a deal that would let Exxon move forward with selling the assets. Its oil production might nearly treble to over 130,000 barrels per day if Seplat, a local energy supplier, agrees to buy them for $1.3 billion.

Bloomberg reported that the transaction was approved by former president Muhammadu Buhari, but the regulator objected, and the approval was later revoked.

IOCs are expanding

Earlier, the federal government has stated that international oil corporations (IOCs) are expanding their investments and portfolio deep offshore, not departing the country.

Heineken Lokpobiri, Nigeria's minister of state for petroleum resources (oil), revealed this during the 7th Nigeria International Energy Summit (NIES 2024) opening ceremony, which took place on Tuesday at the presidential banquet hall in Abuja.

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In Nigeria's upstream oil business, over 100 corporations operate through various subsidiaries, but the five major integrated companies (IOCs) - Shell, Chevron, Total, Eni (AGIP), and Exxon-Mobil - collectively hold around 75% of the country's hydrocarbon output, according to a Bayelsa Commission report.

Notably, Shell recently announced a plan to sell its Nigerian onshore oil and gas division for up to $2.4 billion to a group of five primarily local businesses

Oil marketers raise fuel prices

Earlier, Legit.ng reported that oil marketers attributed the shortage of Petroleum Motor Spirit and gasoline in the country to the persistent logistical issues.

The president of the Petroleum Products Retail Outlets Owners Association (PETROAN), Billy Gillis-Harry, made this known recently.

He asserted that oil marketers might distribute only what they have because of limited supply.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng