The Nigerian National Petroleum Company Limited (NNPC) has initiated a court action in relation to the acquisition of the entire shares of Mobil Producing Nigeria Unlimited (MPNU).
The lawsuit which was filed at the State High Court of the Federal Capital Territory in Abuja named MPNU, its shareholders (Mobil Development Nigeria, Inc. and Mobil Exploration Nigeria, Inc.), and the Nigerian Upstream Petroleum Regulatory Commission as defendants in the suit.
This was disclosed by Seplat Energy Plc in filing with the Nigerian Exchange titled “Interim Corporate Announcement on the Court Action brought by NNPC in relation to the acquisition of the shares of Mobil Producing Nigeria Unlimited.”
NNPC in the suit “requested the State High Court to declare that a dispute has occurred between itself and MPNU in relation to the interpretation of preemption rights under their Joint Operating Agreement (“JOA”) and order NNPC and MPNU to arbitration as required by the JOA.”
“On 6 July 2022, the State High Court made an ex-parte order of interim injunction restraining the Defendants from completing any divestment in MPNU, including the Share Sale and Purchase Agreement signed with Seplat Energy Offshore Limited (the “SPA”),” Seplat stated in the filing.
Seplat Energy however, reiterated that the Sale and Purchase Agreement signed (SPA) it signed with MPNU is still “valid and subsisting,”
It added that the company “remains confident that the matter will be brought to a proper conclusion in accordance with the law.”
It says that any “further information will be provided if available to the Company and permitted by law.”
Recall that in November 2021, Investogist reported that Seplat Energy Plc in talks to acquire ExxonMobil’s Nigerian shallow water business.
In February 2022, Investogist also reported that Seplat Energy Plc has entered into an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU).
Transaction Summary:
- Seplat Energy Offshore Limited, a wholly owned Nigerian subsidiary of Seplat Energy Plc, has entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1,283 million plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.
- The Transaction encompasses the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria, which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd (W.I.) in 2020 (92% liquids).
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
