The head of Nigeria's oil regulator has expressed strong optimism regarding the progress of Exxon Mobil's asset sale to Seplat Energy. The sale, valued at $1.28 billion, was previously declined by the regulator last year, but there's now renewed hope that it can proceed, a move considered vital for attracting much-needed investment into Nigeria's oil and gas sector.

Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), believes the parties involved in the transaction will revisit the regulator's stance and adhere to Nigerian laws, ultimately ensuring that the right procedures are followed. He noted that Exxon didn't initially structure the transaction in accordance with its joint operating agreement. However, Komolafe stated that once Exxon reaches suitable agreements with its joint-venture partners for the assets, the regulator will respond accordingly.

The sale faced opposition from the state oil company NNPC, which argued that it held pre-emptive rights to the assets. NNPC hasn't publicly confirmed whether it made an offer to acquire the assets.

Nigeria, Africa's largest oil exporter, heavily relies on petroleum, accounting for 90% of its foreign exchange earnings and half of its budget. Nevertheless, production in the country has declined due to years of underinvestment and theft. Many international oil majors have attempted to sell onshore assets, but these transactions have often encountered legal and regulatory challenges.

In a related matter, last month, NNPC raised concerns over a subsidiary of Italy's Eni not obtaining its consent before announcing a deal to sell onshore oil assets to local firm Oando. This oversight had the potential to breach the terms of their joint operating agreement.