Seplat Gets Buhari’s Consent To Acquire Exxon Mobil shares
Seplat Energy Plc, has announced that it has gotten the Consent of President Muhammadu Buhari’s Consent for 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”).
As announced on 25 February 2022, Seplat Energy had agreed to acquire the entire share capital of MPNU for a purchase price of $1.283 billion plus up to $300 million contingent consideration. The transformational transaction will create one of the largest independent energy companies on both the Nigerian and London Exchanges, and bolster Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity.
The approval is given by His Excellency, President Muhammadu Buhari in his capacity as the Honourable Minister of Petroleum Resources (“HMPR”), with the granting of Ministerial Consent pursuant to the powers of the Minister under Paragraphs 14-16 of the First Schedule of the Petroleum Act, 1969. A separate announcement from the State House was released earlier.
In the letter, the President as HMPR directed that the HMSPR shall convey Ministerial Consent to all relevant parties, including but not limited to the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”), the Nigerian National Petroleum Company Limited (“NNPC”), the ExxonMobil companies, the Federal Competition and Consumer Protection Commission (“FCCPC”), and Seplat Energy/Seplat Energy Offshore Limited. The President further directed that the HMSPR shall ensure that the ExxonMobil/Seplat Energy operating entity (being MPNU) carries out operatorship of all the OMLs in the related shallow water assets to optimise production in support of Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy.
The Board and Management of Seplat Energy thank His Excellency, President Muhammadu Buhari, for the Ministerial Consent to this landmark acquisition of the entire share capital of MPNU.
Buhari approves Seplat’s acquisition of Exxon Mobil shares – The President, Major General Muhammadu Buhari (retd.), has consented to the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited. This is according to a tweet by the Presidency on Monday afternoon titled ‘President Buhari consents to the acquisition of Exxon Mobil shares by Seplat Energy Offshore Ltd.’ According to the Presidency, Buhari authorized the move as Minister of Petroleum to attract foreign direct investment to the country. He also directed that Exxon Mobil and Seplat mitigate all environmental and abandonment liabilities. The statement read in part, “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 @MBuhari has consented to the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited. “Exxon Mobil had entered into a landmark Sale & Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, & Mobil Exploration Nigeria Inc, registered in Delaware, USA.
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