Buhari approves Seplat’s acquisition of Exxon Mobil’s $1.3bn oil assets

President Muhammadu Buhari has consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.

The Special Adviser to the President on Media and Publicity, Femi Adesina, in a statement issued on Monday, said his principal consented in his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment in the energy sector.

He said Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.

Adesina added that President Buhari had given Ministerial Consent to the deal, considering the extensive benefits of the transaction to the Nigerian Energy sector and the larger economy.

He said 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 to the transaction, and directed that the approval be conveyed to all the parties involved.

The presidential spokesman said Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licenses in the related shallow water assets towards production optimization to support Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.

Adesina added that President Buhari also directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.

The deal worth about $1.3bn will take a 40% stake in four OMLs, including over 90 shallow-water and onshore platforms and 300 producing wells.

There had been opposition from NNPC Ltd, and the Akwa Ibom state government which hosts most of the assets earlier on the transaction but the ministerial approval puts this to rest.