The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rejected President Muhammadu Buhari’s approval for Seplat to acquire ExxonMobil’s shallow water assets.
The rejection came just hours after presidential spokesperson Femi Adesina said President Buhari had approved the transaction.
According to NewsWireNGR, NUPRC chief executive Gbenga Komolafe stated that the commission complies with the provisions of the Petroleum Industry Act 2021 and is Nigeria’s only regulator dealing with matters related to the upstream sector.
Komolafe continued: “As it stands, the issue at hand is purely regulatory, and the Commission had previously communicated to ExxonMobil its refusal of Ministerial assent in this regard. As a result, the Commission reiterates that the status quo remains.”
In February 2022, ExxonMobil agreed to sell its stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore, a wholly owned subsidiary of Nigerian independent oil and gas company Seplat Energy, for $1.283bn plus a contingent consideration of up to $300m.
The deal involves Seplat Energy purchasing MPNU from its shareholders, Mobil Development Nigeria (MDNI) and Mobil Exploration Nigeria (MENI), which are entities of Exxon Mobil.
Mobil Producing Nigeria Unlimited owns a 40% interest in four oil mining licenses, including 300 producing wells and more than 90 onshore and shallow-water platforms.
Seplat said that the transaction would create one of the largest independent energy companies on both the London and Nigerian Stock Exchanges.
The transaction was also expected to improve Seplat Energy’s ability to improve profitability, growth, and overall stakeholder prosperity.
