MON, 08 AUG, 2022-theGBJournal| President Muhammadu Buhari has 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).
The leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, announced the development today, saying that it has received a letter from the Honourable Minister of State for Petroleum Resources notifying it of the consent by President Muhammadu Buhari in his capacity as the Honourable Minister of Petroleum Resources.
The Letter of Consent effectively cools the lingering controversy over the deal which was first announced on 25 February 2022 when Seplat Energy 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 Stock Exchanges, and bolster Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity,’’ Seplat said of the deal.
In the letter, the President as Honourable Minister of Petroleum Resources directed that the Honourable Minister of State for Petroleum Resources (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 thanked President Muhammadu Buhari, for the Ministerial Consent ‘’to this landmark acquisition of the entire share capital of MPNU.’’
Seplat Energy is pursuing a Nigeria-focused growth strategy through participation in asset divestments by international oil companies, farm-in opportunities, and future licensing rounds. The Company is a leading supplier of gas to the domestic power generation market.
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