Seplat Energy Plc (NGX: SEPLAT) has received the approval of President Muhammadu Buhari to proceed with its cash acquisition of the entire share capital of Mobil Producing Nigeria Unlimited from its shareholders, Mobil Development Nigeria Inc. and Mobile Exploration Nigeria Inc., being entities of Exxon Mobil Corporation registered in Delaware, USA.
SEPLAT, a leading Nigerian energy company listed on the NGX Exchange Limited and the London Stock Exchange announced this on Monday, via a corporate release on the NGX Exchange Limited.
In the statement, the company said that that it has received a letter from the Honourable Minister of State for Petroleum Resources (“HMSPR”) notifying Seplat Energy that His Excellency, President Muhammadu Buhari has graciously 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.
As announced on 25 February 2022, Seplat Energy had 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.
The approval is given by His Excellency, President Muhammadu Buhari in his capacity as the Honourable Minister of Petroleum Resources (“HMPR”), with the granting of Ministerial Consent pursuant to the powers of the Minister under Paragraphs 14-16 of the First Schedule of the Petroleum Act, 1969. A separate announcement from the State House was released earlier.
In the letter, the President as HMPR directed that the 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 expressed their gratitude to His Excellency, President Muhammadu Buhari, for the Ministerial
Consent to this landmark acquisition of the entire share capital of MPNU.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur