The federal government has finally given the green light to Seplat Energy’s purchase of Exxon Mobil’s onshore assets, valued at a hefty $1.28 billion. It only took them over two years to sign off on a deal that was first announced way back in February 2022. What an impressive display of efficiency!
This approval, now confirmed by Gbenga Komolafe, the chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was long overdue. Speaking at the NUPRC’s 3rd Anniversary event in Abuja, Komolafe mentioned that the ministerial thumbs-up had at last been secured.
If you’ve been following the energy sector, you would have heard President Bola Tinubu hinting on October 1 that final approval was just days away. So, what was the holdup? Your guess is as good as mine, but bureaucratic hurdles seem to be the culprit once again.
Now, what does this mean for Seplat Energy? The company will acquire a 40 percent stake in four oil mining leases, along with some major infrastructure goodies. This includes the Qua Iboe export terminal and a 51 percent stake in the Bonny River natural gas liquids recovery plant. These assets, formerly controlled by Exxon’s local subsidiary, Mobil Producing Nigeria Unlimited, will now be part of Seplat’s expanding portfolio.
So, let’s break it down. After waiting for more than two years, Seplat is finally stepping into Exxon Mobil’s shoes. But does this long-overdue acquisition signal a win for Nigeria’s energy sector, or is it just another reminder of how slowly the wheels of governance turn? While the deal brings potential, the endless delays cast a shadow over Nigeria’s ability to efficiently manage big transactions, especially in a sector as crucial as energy.
The real question is, can Nigeria ever get its act together and expedite these processes? Or are we doomed to always operate on “Nigerian time”? Either way, Seplat has finally secured its prize. Let’s see if the government can keep up with the momentum moving forward—or if this will be just another case of too little, too late.
