Seplat Energy stated that it aims to reach a prompt conclusion regarding its acquisition of Exxon Mobil Corporation ( XOM )‘s Nigerian shallow water oil assets for $1.28 billion.

The state oil company NNPC had earlier contested Exxon’s sale of the assets to Seplat, citing a purported first right of refusal and regulatory issues further delayed the deal, reported Reuters.

On Friday, Seplat Energy expressed that it had been informed about the termination of the court proceedings initiated by NNPCL against MPNU and its affiliates regarding the planned divestment of MPNU’s shares to Seplat Energy Offshore Limited (SEOL).

Related: Seplat’s $1.28B Asset Deal with Exxon Gets Regulatory Boost: Report

Seplat Energy added that it “commends the open cooperation and progress achieved by all stakeholders and will diligently engage all key stakeholders, including the Government, in progressing towards a swift completion of the acquisition of MPNU.”

As per Reuters, analysts highlighted that the Exxon-Seplat deal could inject crucial capital into Nigeria’s oil industry, potentially boosting production.

Additionally, its approval would signal to investors that similar transactions, such as Shell’s asset sale to Renaissance in January, are likely to receive regulatory clearance, as per the report.

Also Read: Exxon Shrinks Footprint In Nigeria Despite Renewal Of Lease On Lagos Office: Report

Investors can gain exposure to the XOM via the Energy Select Sector SPDR Fund and IShares U.S. Energy ETF ( IYE ) .

Price Actions: XOM shares are down 0.93% at $109.02 at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.