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Exxon-Seplat $1.28 billion deal approval imminent, Nigeria president says
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Exxon-Seplat $1.28 billion deal approval imminent, Nigeria president says
Oct 1, 2024 12:56 AM

ABUJA, Oct 1 (Reuters) - Exxon Mobil Corp's ( XOM ) deal

to sell its Nigerian onshore assets to Seplat Energy

will be approved in days after getting clearance from the

regulator, President Bola Tinubu said on Tuesday.

The $1.28 billion deal has been closely watched since it was

first announced in 2022 with analysts saying it would also

signal to investors that similar deals, such as Shell's asset

sale to Renaissance in January, are likely to get approval.

Tinubu, in a televised broadcast to mark Nigeria's 64 years

of independence, said his government was committed to make it

easy for investors to come and go while upholding the country's

regulatory processes.

"As such, the ExxonMobil Seplat divestment will receive

ministerial approval in a matter of days, having been concluded

by the regulator," Tinubu said.

The Nigerian Upstream Petroleum Regulatory Commission has

not yet announced approving the deal.

Nigeria is struggling to raise output of oil, its biggest

export earner, mainly due to theft of crude and pipeline

vandalism in the Niger Delta, forcing companies like Exxon and

Shell to look to deepwater projects for expansion.

The presidency announced last week that Exxon had proposed a

$10 billion investment in offshore oil operations in a new

investment push in Nigeria.

Tinubu said his government would continue with reforms to

woo investors, adding that Nigeria had attracted foreign direct

investments worth more than $30 billion since he came to office

last year.

But his reforms, which include easing forex controls and

devaluing the currency and cutting subsidies on fuel and

electricity, have worsened a cost of living crisis and angered

citizens.

Tinubu promised fiscal reforms, including reducing taxes on

businesses, to make Nigeria more attractive to investors.

(Writing by MacDonald Dzirutwe, editing by Ed Osmond)

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