… Seplat Energy cannot buy Exxonmobil assets despite presidential consent-NUPRC
President Muhammadu Buhari has approved the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.
In a statement issued Monday by his Media Adviser, Femi Adesina, “the president acting in his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment, FDI, in the energy sector, has consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.”
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.
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 licences 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.
Komolafe
Reacting to this development, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has insisted that indigenous oil firm Seplat Energy cannot acquire the assets of Exxonmobil in Nigeria despite President Muhammadu Buhari’s approval for the sale to go through.
In a statement issued on Monday, the commission said that in line with the Petroleum Act, it was the sole regulator in such matters and that ministerial consent had been declined for the sale and that the status quo remained intact.
The statement appears to countermand a statement issued earlier by presidential spokesman, Femi Adesina, in which Buhari, in his capacity as Minister of Petroleum Resources had given ministerial consent to the sale.
However, the sale in question appeared to be shares of Mobil Producing Nigeria and ExxonMobil Nigeria operations, which is the beneficial owner of the assets in question.
Below is the full statement:
PRESS RELEASE
STATUS-QUO REMAINS ON SHARE SALE BY EXXONMOBIL TO SEPLAT ENERGY – NUPRC
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) affirms that status quo remains in respect of ExxonMobil/Seplat Energy share acquisition.
Responding to media enquiries on latest development about the transaction, the Chief Executive of the NUPRC Engr. Gbenga Komolafe clarified that the Commission in line with the provisions of the Petroleum Industry Act 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.
Signed
Engr. Gbenga Komolafe, FNSE
08/08/2022
