Buhari Approves Sale of Mobil Assets to Seplat

August 9, 2022
seplat and exxonmobil

By Aduragbemi Omiyale

One of the leading energy firms in Nigeria, Seplat Energy Plc, has received approval from President Muhammadu Buhari to acquire the assets of Mobil Nigeria.

In February, Seplat, which trades its shares on the Nigerian Exchange (NGX) Limited and the London Stock Exchange, announced that it was purchasing the assets of a rival oil company.

However, this was blocked by the Nigerian National Petroleum Company (NNPC) Limited, leading to a court matter.

Last month, the state-owned oil agency secured an order of interim injunction from a court in Abuja stopping Exxon “from completing any divestment” in a unit that ultimately operates four licenses in the country but Seplat expressed optimism that the deal would scale through.

On Monday, the organisation informed the investing public that Mr Buhari, who is also the Minister of Petroleum Resources, has approved the deal, directing the NNPC and others to see to the conclusion of the transaction.

In the statement, Seplat thanked the President for granting the “ministerial consent to this landmark acquisition of the entire share capital of MPNU” under Paragraphs 14-16 of the First Schedule of the Petroleum Act, 1969.

Seplat is acquiring the entire share capital of Mobil Producing Nigeria Unlimited from its shareholders, Mobil Development Nigeria and Mobil Exploration Nigeria, which are operated by Exxon Mobil Corporation registered in Delaware for a price of $1.283 billion plus up to $300 million contingent consideration.

According to Seplat, this deal will create one of the largest independent energy companies on the two exchanges it is listed.

The firm further said the transaction will bolster its ability to drive increased growth, profitability and overall stakeholder prosperity.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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