Seplat Energy Plc, has finally received approval ministerial approval, in line with the provisions of the Petroleum Industry Act, to move forward with the acquisition of onshore assets of MOBIL PRODUCING NIGERIA UNLIMITED (MPNU), a subsidiary of US based ExxonMobil. This approval comes more than two years after the deal was originally struck.The divestment deal had suffered a setback when the federal government declined to approve the transaction in May 2022.*****
CEO of The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed the receipt of consent from Nigeria’s Minister of Petroleum Resources Bola Ahmed Tinubu for Seplat Energy's acquisition of ExxonMobil onshore assets valued at $1.2 billion.
Following the approval, Seplat Energy will acquire a 40% stake in four oil mining leases, along with key infrastructure, including the Qua Iboe export terminal, and a 51% stake in the Bonny River natural gas liquids recovery plant, previously owned by ExxonMobil’s Nigerian subsidiary, Mobil Producing Nigeria Unlimited.
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This was due to the NNPC's decision to invoke its Right of First Refusal (RFR) regarding the sale of these assets.
This RFR is specified in the Joint Operating Agreement (JOA) of the Joint Venture (JV), which outlines NNPC’s stance on Seplat Energy Plc’s intended purchase of the shares.
In July 2024, NNPC withdrew the lawsuit and approved that the sale be finalized according to the PIA.
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