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Nigeria's Seplat states NNPC has withdrawn challenge to $1.3 bln Exxon deal

Seplat Energy is pursuing a quick conclusion to its $1.28 billion acquisition of ExxonMobil's Nigerian shallow water oil properties, it stated on Friday after being alerted that NNPC had actually halted a legal obstacle to the deal.

State oil business NNPC had actually challenged Exxon's sale of the possessions to Seplat, stating it had first right of rejection. The deal was even more held up by regulatory issues.

Seplat Energy applauds the open cooperation and development accomplished by all stakeholders, and will vigilantly engage (with). all crucial stakeholders, consisting of the federal government, in advancing. towards a speedy completion of the acquisition, a Seplat. statement said.

An NNPC representative was not able to offer instant. comment.

Analysts have actually stated that the Exxon-Seplat deal would inject. much-needed capital into Nigeria's oil market, possibly. resulting in better output. It would also signal to investors. that comparable deals, such as Shell's property sale to Renaissance in. January, are most likely to acquire regulative approval.

Nigeria, Africa's most significant oil manufacturer, depends on petroleum. for more than 90% of its forex and half its budget plan. Nevertheless, output has declined over the last few years owing to. underinvestment and theft.

Oil majors operating in Nigeria, including Shell. and TotalEnergies, have been exiting their onshore. shallow water operations to focus on deepwater drilling. operations.

(source: Reuters)