Nigerian President Muhammadu Buhari has approved the acquisition of Exxon Mobil’s Nigerian unit by Seplat Energy ( SEPLAT.LG ) in a $1.28 billion deal announced in February.
Buhari, who is also the oil minister, gave ministerial approval to the deal, the president said in a statement on Monday.
Exxon and Seplat are expected to exploit the unit’s oil licences, supporting Nigeria to meet its OPEC production quota in the short term, as well as accelerating the development of gas resources in the region.
Seplatt said its offshore unit in February agreed to buy all of the equity in Exxon’s Nigerian offshore shallow water business for $1.28 billion, plus up to $300 million in additional compensation based on the unit’s oil price and average production. Mobil Producing Nigeria Unlimited for five years.
Seplat is listed on the London and Nigerian stock exchanges.