(Reuters) – Nigerian President Muhammadu Buhari has granted consent to the acquisition of Exxon Mobil’s Nigerian unit by Seplat Energy (SEPLAT.LG), in a $1.28 billion deal announced in February.
Buhari, who doubles as oil minister, granted ministerial approval to the deal, the presidency said in a statement on Monday.
Exxon and Seplat are expected to operate the unit’s oil licenses, supporting Nigeria meet its OPEC production quota in the short term as well as accelerate the development of gas resources in the area.
Seplat said in February its offshore unit had entered an agreement to buy the entire share capital of Exxon’s Nigerian offshore shallow water business for $1.28 billion, plus a further consideration of up to $300 million based on the oil price and the average production of the unit, Mobil Producing Nigeria Unlimited, over a five-year period.
Seplat is listed on the London and Nigerian stock exchanges.