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Buhari approves Seplat’s acquisition of Exxon Mobil subsidiary in Nigeria

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President Muhammadu Buhari has approved the acquisition of Mobil Producing Nigeria Unlimited (MPNU) by Seplat Energy Offshore Limited, an indigenous oil and gas company.

ExxonMobil, the parent company of MPNU, had earlier signed a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of the subsidiary from Exxon Mobil Corporation of the United States.

The agreement would also enable Seplat Energy to acquire share capital from Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc., both registered in Delaware, US.

The Special Adviser on Media and Publicity to the President, Femi Adesina, who confirmed the development in a statement in Abuja, said President Buhari’s approval was in line with Nigeria’s drive for increased indigenous participation in the energy sector.

READ ALSO: Seplat to acquire Exxon Mobil’s stake in Nigerian subsidiary with $550m loan

He said: “Considering the extensive benefits of the transaction to the Nigerian energy sector and the larger economy, President Buhari has given ministerial consent to the deal.

“The president, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties.

“He directed that his approval be conveyed to all the parties involved.

“Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licences in the related shallow water assets towards production optimisation to support Nigeria’s OPEC quota in the short term.

“It is also expected to ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy.”

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