President Muhammadu Buhari has consented to the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited in his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment in the energy sector.
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.
Considering the extensive benefits of the transaction to the Nigerian Energy sector and the larger economy, President has given Ministerial Consent to the deal.
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 licenses 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.
The Exxon Mobil and SEPLAT Petroleum had entered into Share Sales agreement for the acquisition of the shares, assets and liabilities of the company in the Oil Minig Licenses under the agreement and the deal had been awaiting ministerial approval.
The President has now approved the deal and the production and Other issues surrounding the deal can now go ahead.
The decision is also expected to help the nation in returning back to its approved OPEC production quota and gain more from the price surge engendered by the Russian invasion of Ukraine.
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