- Why Buhari approved Seplat’s acquisition of $1.283b Mobil share capital
- Nominates Executive Commissioner for Upstream Regulatory Commission
President Muhammadu Buhari has endorsed the granting of ministerial consent to Seplat Energy Offshore Limited, a subsidiary of Seplat Energy cash acquisition of Mobil Producing Nigeria Unlimited’s (MPNU) share capital of its shareholders, Mobil Development Nigeria Incorporated (MDNI) and Mobil Exploration Nigeria Incorporated (MENI), being entities of Exxon Mobil Corporation (ExxonMobil) registered in Delaware, United States of America (USA).
As announced on February 25, 2022, Seplat Energy agreed to acquire the share capital of MPNU for $1.283 billion and $300 million contingent consideration.
The transformational transaction would create one of the largest independent energy companies on the Nigerian and London Stock Exchanges and boost Seplat Energy’s ability to drive growth, profitability and stakeholder prosperity.
The approval was given by President Buhari in his capacity as substantive Minister of Petroleum Resources, with the granting of ministerial consent pursuant to the powers of the minister under paragraphs 14, 15 and 16 of the first schedule of the Petroleum Act 1969.
A separate announcement from the State House, Abuja was released earlier on the development in a letter through which the President directed the Minister of State for Petroleum Resources to convey ministerial consent to all relevant parties.
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The stakeholders are the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian National Petroleum Company Limited (NNPC), ExxonMobil companies, the Federal Competition and Consumer Protection Commission (FCCPC), Seplat Energy and Seplat Energy Offshore Limited, among others.
The President further directed that the Minister of Petroleum Resources shall ensure that the ExxonMobil and Seplat Energy operating entity, being the MPNU, carries out operatorship of all the Oil Mining Leases (OMLs) in the related shallow water assets to optimise production in support of Nigeria’s quota of the Organisation of Oil Producing Countries (OPEC) in the short-term, as well as ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy.
Responding, the board and management of Seplat Energy thanked President Buhari for the ministerial consent on the landmark acquisition of the share capital of MPNU.
Meanwhile, the _News Agency of Nigeria_ (NAN) reports that President Buhari has forwarded the name of Muhammad Sabo Lamido to the Senate, as Executive Commissioner, Finance and Accounts, for the Nigerian Upstream Petroleum Regulatory Commission.
Senior Special Assistant to the President on Media and Publicity, Femi Adesina, confirmed this in a statement in Abuja on Monday. Buhari, in a letter addressed to President of the Senate, Ahmed Lawan, said Lamido was nominated due to the death of Hassan Gambo, who occupied the position until his demise and therefore, urged the Senate to confirm the nominee “in the usual expeditious manner.”
