A statement from the presidency on Monday noted that the
Minister of Petroleum, President Buhari had granted assent to the deal in which
Seplat will acquire a 40 per cent stake of ExxonMobil oil assets around Akwa
Ibom.
The statement cited the Petroleum Industry Act (PIA) 2021,
as an incentive to drive Foreign Direct Investment and raise oil production
from the assets.
However, the Chief Executive of the Nigerian Upstream
Petroleum Regulatory Commission (NUPRC) Engr. Gbenga Komolafe rejected
President Muhammadu Buhari’s assent to the acquisition.
Komolafe, in a statement, Monday night, clarified that the
Commission in line with the provisions of the PIA 2021 is the sole regulator in
dealing with such matters in the Nigerian upstream sector.
“As it were, the issue at stake is purely a regulatory
matter and the Commission had earlier communicated the decline of Ministerial
assent to ExxonMobil in this regard.
“As such the Commission further affirms that the status quo
remains. The Commission is committed to ensuring predictable and conducive
regulatory environment at all times in the Nigerian upstream sector,” the NUPRC
noted.
The NNPC now NNPC Ltd had been in a tussle with ExxonMobil
over the transaction insisting that it has the first right of refusal, being in
a joint venture with Mobil.
The Akwa Ibom government had also scolded the international
oil company for proceeding on the assets lay off without recourse to the state
hosting them.
Dr. Chioma Nwachuku, Director, External Affairs &
Sustainability for Seplat Energy Plc celebrated the approval of the acquisition
by President Buhari, as the minister of petroleum.
The statement issued in Lagos and London simultaneously
read: Seplat Energy Plc, a leading Nigerian energy company listed on the
Nigerian Exchange and the London Stock Exchange, is pleased to announce that it
has received a letter from the Honourable Minister of State for Petroleum
Resources (“HMSPR”) notifying Seplat Energy that His Excellency, President
Muhammadu Buhari has graciously approved that Ministerial Consent be granted to
Seplat Energy Offshore Limited’s (a Seplat Energy subsidiary) cash acquisition
of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) from
its shareholders, Mobil Development Nigeria Inc (“MDNI”) and Mobil Exploration
Nigeria Inc (“MENI”), being entities of Exxon Mobil Corporation registered in
Delaware, USA (“ExxonMobil”).
As announced on 25 February 2022, Seplat Energy had agreed
to acquire the entire share capital of MPNU for a purchase price of $1.283
billion plus up to $300 million contingent consideration. The transformational
transaction will create one of the largest independent energy companies on both
the Nigerian and London Stock Exchanges, and bolster Seplat Energy’s ability to
drive increased growth, profitability and overall stakeholder prosperity.
The approval is given by His Excellency, President Muhammadu
Buhari in his capacity as the Honourable Minister of Petroleum Resources
(“HMPR”), with the granting of Ministerial Consent pursuant to the powers of
the Minister under Paragraphs 14-16 of the First Schedule of the Petroleum Act,
1969. A separate announcement from the State House was released earlier.
In the letter, the President as HMPR directed that the HMSPR
shall convey Ministerial Consent to all relevant parties, including but not
limited to the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”), the
Nigerian National Petroleum Company Limited (“NNPC”), the ExxonMobil companies,
the Federal Competition and Consumer Protection Commission (“FCCPC”), and
Seplat Energy/Seplat Energy Offshore Limited.
The President further directed that the HMSPR shall ensure
that the ExxonMobil/Seplat Energy operating entity (being MPNU) carries out
operatorship of all the OMLs in the related shallow water assets to optimise
production in support of Nigeria’s OPEC quota in the short term as well as
ensure accelerated development and monetisation of the gas resources in the
assets for the Nigerian economy.
The Board and Management of Seplat Energy thank His
Excellency, President Muhammadu Buhari, for the Ministerial Consent to this
landmark acquisition of the entire share capital of MPNU.
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