Buhari Reverses Approval For Acquisition Of Exxon Mobil’s Assets

Nigeria Risks N1.37tn Loss Amid Insufficient Revenue, Here's Why

President Muhammadu Buhari has reversed his approval of Seplat Energy’s purchase of Exxon Mobil’s Assets.

The President’s reversal is coming barely 48 hours after a statement released by Femi Adesina that that the deal had been approved.

Exxon mobil shares

BizWatch Nigeria had reported that Buhari had on Monday approved Exxon Mobil shares to be acquired by Seplat Energy Offshore Limited.

“In his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment in the energy sector, President Muhammadu Buhari has consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited,” the statement read.

“Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.”

NUPRC refutes acquisition of Exxon mobil

BizWatch Nigeria had on Wednesday reported that the clearance of Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation has been refuted by Nigeria’s upstream petroleum regulator commission (NUPRC).

NUPRC which had earlier informed ExxonMobil the transaction had been rejected, stated on Monday that the situation was a regulatory one and nothing had changed.

The ExxonMobil/Seplat Energy stake transaction is still in the status quo, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The Chief Executive of the NUPRC, Engr. Gbenga Komolafe responded to media inquiries about the most recent development regarding the transaction by stating that the Commission, in accordance with the provisions of the Petroleum Industry Act 2021, is the only regulator in dealing with such matters in the Nigerian upstream sector.

“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. As such the Commission further affirms that the status quo remains.”

Seplat Energy Plc had in February, 2022 announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28bn.

The transaction entails the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business.

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