Seplat Energy’s proposed acquisition of assets belonging to Mobile Oil Producing Nigeria Unlimited (MPNU) for a sum of $1.28 billion has suffered a major setback following the refusal of the federal government of Nigeria to give its assent to the deal.
On February 25, Seplat Energy Plc announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28 billion.
The transaction entails the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business.
But the deal was subject to Ministerial Consent and other required regulatory approvals.
The Chief Executive Officer of Nigerian Upstream Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, in two separate letters dated May 13, 2022, addressed to the Chairman/ Managing Director, Mobil Producing Nigeria Unlimited, Mr. Richard Laing as well as the immediate past Chairman of Seplat Energy, Dr. ABC Orjiako, maintained that regardless of the mode of the transaction, Mobil Oil still remains to all intents and purposes, the assignor of the asset under Nigerian law.
“We regret to inform you that His Excellency, the Minister of Petroleum Resources has declined his consent to the transaction,” the Commission’s boss stated in the letter addressed to Laing, with reference number: NUPRC/LD/1189/01, titled: “Re: Potential Sale and Purchase of the Equity (Shares) of Mobil Producing Nigeria Unlimited.”
Komolafe in his letter also made reference to the multinational oil company’s letter dated March 30, 2022 with Ref: MPN-PGA-NUP-CCE-0322-0027 on the above subject matter.
Going further, the Commission pointed out that: “You may also be aware that the Commission is in receipt of a letter of 10th March 2022, written by Seplat Energy to the Minister of State for Petroleum Resources, requesting the consent of the Minister of Petroleum Resources to the transaction. This letter was received by the Commission on March 30, 2022.