ExxonMobil-Seplat Agreement Set To Be Approved — FG

THE federal government claims that it is about to approve Seplat Energy's purchase of the assets owned by Mobil Producing Nigeria Unlimited (MPNU).

On February 25, 2022, Seplat stated that it has reached an agreement to purchase ExxonMobil's 40% ownership in MPNU. It is anticipated that the transaction would close in the second half (H2) of 2022.

However, ExxonMobil expressed interest in purchasing a 60% stake in MPNU from Nigeria National Petroleum Company (NNPC) Limited.

The proposed acquisition was denied approval by the Nigerian Upstream Petroleum Regulatory Company (NUPRC) on May 19, 2022, citing the “overriding national interest.”

Also, a few days after giving the deal his original clearance, former President Muhammadu Buhari revoked his authorization in August 2022.

Minister of Petroleum Resources (oil) Heineken Lokpobiri stated that the deal will soon be approved by the government during the 10th anniversary celebration of Seplat Energy's dual listing on the London Stock Exchange (LSE) and Nigerian Exchange (NGX) on April 16 in Lagos.

“We are at the verge of closing those issues and I can assure you that we will close that in a very short time. The president is committed to the closure of that,” Lokpobiri said.

The minister went on to say that the parties have advanced in their conversations and that, despite any challenges, the deal would be closed.

“That is fundamental to the opening of new investments in the country now that the whole world is campaigning against investments in fossil fuel,” the minister said.

“If we close these Seplat transactions, Seplat expands their transactions, Bonga North, which is predicated on that resolution comes on board.

“The whole world will know that Nigeria has now become a new investment destination and that is what, as you know, the objective of this government is.”

He went on, saying that the nation must “evolve homegrown solutions to solve our energy problems; this is the time for us to solve our own problems.”

Additionally, Lokpobiri stated that creative approaches of generating finance through the capital market must be developed.

“We are committed in sustaining our production in oil and gas but in a more responsible and cleaner way by deploying the best technology,” he said.

According to the minister, Nigeria will increase its output in order to raise funds during a period when the price of gas and oil is very favorable.