Buhari withdraws approval of a $1.3 billion oil deal, according to Mobil Asset

Ibekimi Oriamaja Reports

ABUJA — Yesterday, President Muhammadu Buhari revoked his prior approval, allowing Seplat Energy Plc to purchase certain assets from ExxonMobil Corporation.

Prior to this, Seplat Energy had agreed to purchase the entire share capital of MPNU for $1.3 billion plus an additional $300 million in contingent consideration.

However, the Nigerian National Petroleum Company Limited had objected, claiming that as a partner, it ought to have been given the option to buy the assets first.

However, the president has chosen to support the NUPRC’s stance in the agreement, according to Garba Shehu, the presidential spokesperson, who yesterday took a side with NNPC Limited and the regulator, the Nigerian Upstream Petroleum Regulatory Commission, or NUPRC.

The NUPRC had earlier objected to Seplat Energy Plc being given access to the assets.

Vanguard was able to obtain a statement from the Commission that read: “Responding to media enquiries on the latest development regarding the transaction, the Chief Executive of the NUPRC Gbenga Komolafe clarified that the Commission is the only regulator in dealing with such matters in the Nigerian upstream sector in accordance with the provisions of the Petroleum Industry Act 2021.

“In a sense, the matter at hand is purely a regulatory one, and the Commission had already informed ExxonMobil that the Ministerial assent had been declined in this regard. As a result, the Commission further declares that nothing has changed. The Commission is dedicated to maintaining an upstream sector in Nigeria that is predictable and conducive to business at all times.

A major Nigerian energy company that is listed on the London Stock Exchange and the Nigerian Exchange, Seplat Energy Plc, also said in a separate statement: “We are pleased to announce that it has received a letter from the Honourable Minister of State for Petroleum Resources (HMSPR) notifying Seplat Energy that President Muhammadu Buhari has kindly approved that Ministerial Consent be granted to Seplat Energy Offshore Limited’s (a Seplat Energy subsidiary) cash acquisition (ExxonMobil).

Seplat Energy had agreed to purchase the entire share capital of MPNU for a purchase price of $1.283 billion plus up to $300 million in contingent consideration, as it was announced on February 25, 2022. The transformational transaction will increase Seplat Energy’s capacity to foster increased growth, profitability, and overall stakeholder prosperity while forming one of the largest independent energy companies on both the Nigerian and London Stock Exchanges.

The approval is given by President Muhammadu Buhari in his capacity as the Honorable Minister of Petroleum Resources (HMPR), with the granting of Ministerial Consent in accordance with the Minister’s authority under Paragraphs 14–16 of the First Schedule of the Petroleum Act, 1969. Earlier, a different State House announcement was made public.