The $1.3 billion Exxon agreement challenge has been abandoned, according to Nigeria’s Seplat

After learning that NNPC has put an end to a legal challenge to the agreement, Seplat Energy (SEPLAT.LG), opens new tab announced on Friday that it is working to expedite the completion of its $1.28 billion acquisition of ExxonMobil’s (XOM.N), opens new tab Nigerian shallow water oil assets.

Exxon’s sale of the properties to Seplat was contested by the state oil corporation NNPC, which claimed it had the right of first refusal. Additional delays to the deal came from regulatory concerns.

“Seplat Energy commends the open cooperation and progress achieved by all stakeholders, and will diligently engage (with) all key stakeholders, including the government, in progressing towards a swift completion of the acquisition,” said a statement from Seplat.

A representative for NNPC was unable to respond right away.

According to analysts, Nigeria’s oil industry would receive much-needed capital injections from the Exxon-Seplat transaction, which might result in increased production. Additionally, it would let investors know that transactions like the asset sale that Shell did to Renaissance in January are probably going to be approved by regulators.

The majority of Nigeria’s foreign exchange earnings and half of its budget are derived from crude oil, making it the continent’s largest oil producer. However, theft and underinvestment have caused output to drop recently.

Major oil companies in Nigeria, such as TotalEnergies (TTEF.PA) and Shell (SHEL.L), have been concentrating on deepwater drilling activities by abandoning their onshore shallow water operations.