President Bola Tinubu has announced that the Seplat Energy Plc’s proposal to acquire all shares of Mobil Producing Nigeria Unlimited for $1.28 billion will get approval in few days.
President Tinubu made this disclosure during the 64th anniversary address to the Nation today.
The President noted that the Nigerian Upstream Petroleum Regulatory Commission had concluded the verification processes in line with the Petroleum Industry Act, PIA, just as in the case of other qualified divestments approved in the sector.
He emphasised a balanced approach to economic policy, by supporting free enterprise and the ability to enter or exit the market freely.
However, he acknowledged the importance of maintaining effective regulatory processes to ensure fair practices and protect public interest.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes.
“This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively.
“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
This move he said will create vibrancy and increase oil and gas production, positively impacting our economy.
The Nigerian National Petroleum Company Limited had in June filed a motion to discontinue its legal action against several subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission.
The motion filed on June 11, 2024, in the High Court of the Federal Capital Territory, Abuja, aims to facilitate the settlement agreement for the complete divestment of MPNU to Seplat Energy Offshore Limited.
This step is part of a larger effort to finalize the transaction, indicating progress in the divestment process and the interests of both parties involved.
Seplat Energy Plc announced its intention to acquire all shares of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation for $1.28 billion in February 2022.
However, the deal faced legal challenges when the NNPC contested the transaction, claiming preferential rights under a Joint Operating Agreement with ExxonMobil.
