President Muhammadu Buhari has approved the acquisition of
ExxonMobil Corporation assets by Seplat Energy Plc despite moves by the
state-owned oil company to block the deal.
In February, Seplat had entered into an agreement to acquire
the entire share capital of MPNU from Exxon Mobil.
But the deal was blocked by Nigerian National Petroleum
Company (NNPC) Limited. Regulatory authorities also declined consent to the
transaction.
In a statement on Monday, Femi Adesina, presidential
spokesperson, said Buhari made the approval considering the ample benefits of
the divestment to the country’s oil sector.
“In his capacity as minister of petroleum resources, and in
consonance with the country’s drive for foreign direct investment in the energy
sector, President Muhammadu Buhari has consented to the acquisition of Exxon
Mobil shares in the United States of America by Seplat Energy Offshore
Limited,” the statement reads.
“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.
“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.”
According to the statement, the president has 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,” it added.
“President Buhari also directed that all environmental and
abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.”
In July, Seplat Energy informed investors that NNPC blocked
the deal through a court injunction restraining Exxon Mobil from selling its
assets in the country.
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