Seplat Energy Plc has prolonged the Share Sale and Purchase Agreement for the acquisition of ExxonMobil’s share capital in Mobil Producing Nigeria Unlimited, according to a notice submitted to the Nigerian Exchange Limited.
The extension is aimed at keeping the transaction intact while awaiting the resolution of certain legal matters and obtaining the required regulatory approvals.
CEO Mr. Roger Brown stated that the terms of the agreement, initially disclosed on February 25, 2022, and reaffirmed on May 24, 2023, remain unchanged.
Seplat Energy emphasized that the headline consideration, effective date, and contingent payment structure remain the same. The company is actively engaging stakeholders and is committed to finalizing the deal at the earliest opportunity.
In February 2022, Seplat Energy Plc reached an agreement to purchase the assets of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for approximately $1.28 billion.
The deal, which includes the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business, was approved by former President Muhammadu Buhari in his capacity as Minister of Petroleum Resources.
However, the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, declined to endorse the deal, leading to regulatory challenges and delays.
Despite these hurdles, Seplat’s CEO, Roger Brown, expressed the company’s determination to complete the acquisition, especially under the new administration led by President Bola Tinubu.
The company is actively navigating the regulatory landscape to finalize the transaction, which holds significant implications for Nigeria’s oil and gas industry.
As of Thursday, May 23, 2024, Seplat Energy closed trading at N3,000.00 per share on the Nigerian Stock Exchange (NGX), marking a 1.3% gain over its previous closing price. Since the beginning of the year, the company’s share price has increased by 29.9%, starting at N2,310.00.
