Tinubu to approve Seplat Energy’s $1.28bn acquisition deal of ExxonMobil

• Published On: 01 October 2024 at 20:32

President Bola Tinubu has announced that Seplat Energy Plc's proposal to acquire all shares of Mobil Producing Nigeria Unlimited for $1.28 billion will be approved within a few days.

President Tinubu revealed this during his 64th anniversary address to the nation today.

The President stated that the Nigerian Upstream Petroleum Regulatory Commission had completed the verification processes in accordance with the Petroleum Industry Act, PIA, as with other qualified divestments approved in the sector.

He advocated for a balanced approach to economic policy, promoting free enterprise and the ability to enter and exit the market freely.

However, he recognised the importance of maintaining effective regulatory processes to ensure fair practices and protect the public interest.

"Fellow citizens, our administration is dedicated to free enterprise, free entry, and free exit from investments while upholding the integrity and effectiveness of our regulatory processes.

"This principle guides our divestment transactions in the upstream petroleum sector, where we are committed to improving fortunes.

"As a result, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been completed by the regulator, NUPRC, in accordance with the Petroleum Industry Act (PIA). This was accomplished in the same way as other qualified divestments approved in the sector."

This move, he claims, will increase oil and gas production, thereby benefiting the economy.

In June, the Nigerian National Petroleum Company Limited filed a motion to discontinue its legal action against several Mobil Nigeria subsidiaries and the Nigerian Upstream Petroleum Regulatory Commission.

The motion, filed on June 11, 2024, in the High Court of the Federal Capital Territory, Abuja, seeks to facilitate a settlement agreement for MPNU's complete divestment to Seplat Energy Offshore Limited.

This step is part of a larger effort to complete the transaction, demonstrating progress in the divestment process and the interests of both parties.

In February 2022, Seplat Energy Plc announced its intention to buy all of Mobil Producing Nigeria Unlimited's shares from Exxon Mobil Corporation for $1.28 billion.

However, the transaction was hampered by legal challenges when the NNPC contested it, claiming preferential rights under a Joint Operating Agreement with ExxonMobil.