Seplat Moves to Acquire Nigeria’s Exxon Mobil Shares, Buhari Assents
Seplat Moves to Acquire Nigeria’s Exxon Mobil Shares, Buhari Assents: President Muhammadu Buhari has given the presidential nod to Seplat Energy’s move to acquire Nigeria’s entire share capital from the Exxon Mobil Corporation.
Speaking through his media adviser, Mr. Femi Adesina, in a release issued on Monday, the President, who doubles as the petroleum minister, assented to the acquisition. The rationale is allegedly in line with Nigeria’s drive for Foreign Direct Investment in the energy sector.
Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.
But Seplat’s move to take over the asset suffered setbacks after NNPC asserted a right of first refusal on the deal.
However, President Buhari gave his Ministerial Consent to the deal based on the extensive benefits of the transaction to the Nigerian Energy sector and the larger economy.
The President, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all the parties involved.
Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licenses in the related shallow water assets towards production optimization to support Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.
President Buhari also directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.