Minister of Petroleum Resources, President Muhammadu Buhari has granted consent to the acquisition of Exxon Mobil's Nigerian unit by Seplat Energy, in a $1.28 billion deal announced in February.
ExxonMobil, the parent company had earlier 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
of the U.S.A.
The agreement would also enable Seplat Energy to acquire
share capital from Mobil Development Nigeria Inc., and Mobil Exploration
Nigeria Inc., both registered in Delaware, USA.
Mr Femi Adesina, the president’s spokesman stated on Monday
in Abuja that the president’s consent was in consonance with Nigeria’s drive
for increased indigenous participation in the energy sector.
“Considering the extensive benefits of the transaction to
the Nigerian energy sector and the larger economy, President Buhari has given
ministerial consent to the deal.
“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.
“He directed that his approval be conveyed to all the
parties involved.
“Exxon Mobil/Seplat are expected to carry out operatorship
of all the oil mining licences in the related shallow water assets towards
production optimisation to support Nigeria’s OPEC quota in the short term.
“It is also expected to ensure accelerated development and
monetisation of the gas resources in the assets for the Nigerian economy,’’’ he
stated.
Adesina quoted the minister as directing that all
environmental and abandonment liabilities be adequately mitigated by Exxon
Mobil and Seplat