ABUJA (Reuters) - Nigeria’s petroleum regulator on Tuesday refused to sell its stake in Nigerian unit Exxon Mobil to Seprat for $1.28 billion after President Mohammed Buhari approved the deal.
Gbenga Komolafe, head of Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said under a new petroleum law passed last year, the petroleum minister could only approve such acquisitions on the commission's recommendations. Buhari also serves as oil minister.
“The matter at hand is purely a regulatory matter and the Commission had previously notified ExxonMobil of its refusal to grant ministerial approval in this regard. We further reaffirm that the status quo will be maintained," NUPRC said.
NUPRC had earlier this year declined to okay the deal without publicly giving a reason.
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Buhari on Monday granted consent to the deal.
A presidency source told Reuters that Buhari would meet his junior oil minister Sylva Timipre on Tuesday over the issue. Timipre is expected to issue a statement after the meeting, the source added.
The sale is also opposed by state firm NNPC Limited, which argues it has pre-emptive rights to the assets.
Under the Petroleum Industry Act, which was passed last year after nearly two decades in the making, a holder of a petroleum exploration licence cannot "transfer his licence or any right, power or interest without prior written consent of the commission."
The law also says "where the consent of the minister is granted in respect of the application for a transfer, the commission shall promptly record the transfer in the appropriate register."
It is not clear if the petroleum minister's consent can override an objection from the commission.
Oil majors operating in Nigeria, including Shell and TotalEnergies want to exit shallow water operations, citing concern over disruptions by local communities and focus on deep water drilling.
