Financial Energy Review
The federal government has finally approved the acquisition of Mobil Producing Nigeria Unlimited by Seplat. The approval which has been a long wait for both Seplat and ExxonMobil will now make Seplat stand out as one of the largest independent energy companies in Nigeria.
According to the statement from Seplat, the company 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”).
President Muhammadu Buhari who is also the Minister of Petroleum Resources, consented to the acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Ltd after a long negotiation and final agreement with NNPC limited.
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.
Meanwhile, 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.
