Seplat Energy Plc says the company has not received official notification that President Muhammadu Buhari has reversed his approval of the acquisition of ExxonMobil Corporation assets by Seplat Energy Plc.
The company stated this in a filing with the Nigerian Exchange on Thursday seen by Investogist.
President Buhari had approved the deal on Monday in his capacity as the Minister of Petroleum.
However, Senior Special Assistant to the President on Media and Publicity, Garba Shehu on Wednesday said that Buhari has reversed his approval for the deal. He explained that Buhari’s reversal of his decision and the previous misunderstanding was due to “agencies involved in (the) decision had not coordinated well among themselves.”
Shehu said Buhari’s position is now inline with that of the NUPRC. “Having looked at all of the facts with all of the ramifications, the president decided the position of the regulator is to be supported,” he said.
Recall that the the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), had Monday evening rejected President Buhari’s consent for the approval of the acquisition.
The Thursday’s document signed by Seplat’s Chief Financial Officer, Emeka Onwuka on behalf of Seplat Energy read in part: Seplat Energy has become aware of a news report that Ministerial Approval of the Company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) has
been withdrawn.
“Seplat Energy has received no official notification of such a decision and is seeking clarification from the relevant authorities. We will continue to work with all parties to achieve a successful outcome to the proposed acquisition and will provide an update in due course.
“This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).
On 25 February 2022, Seplat Energy announced it had agreed to acquire the entire share capital of Mobil Producing Nigeria Unlimited (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 Nigerian National Petroleum Company Limited (NNPC) had initiated a court action in relation to the acquisition of the entire shares of Mobil Producing Nigeria Unlimited (MPNU).
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”).”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
