Buhari Gives Ministerial Consent to Seplat’s Proposed Acquisition of MPNU
By Ikenna Omeje
President Muhammadu Buhari has given ministerial consent to Seplat Energy’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (MPNU).
Presidential spokesman, Femi Adesina who made the disclosure on Monday, said that the approval by the president was in consideration of the extensive benefits of the transaction to the Nigerian energy sector and the larger economy.
Seplat had in February announced that it has entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1,283 million-plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.
“In his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment in the energy sector, President Muhammadu Buhari has consented to the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited,“ Adesina said in a statement.
“Exxon Mobil had entered into a landmark Sale & Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, & Mobil Exploration Nigeria Inc, registered in Delaware, USA.
“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.”
Meanwhile, Seplat has acknowledged receiving a letter from the Minister of State for Petroleum Resources, Chief Timipre Sylva, informing the company of the ministerial consent. The Board and management of the company expressed gratitude to the President for given consent to the acquisition.
The transaction, according to the company, will create one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, and bolster Seplat’s ability to drive increased growth, profitability and overall stakeholder prosperity.
“In the letter, the President as HMPR directed that the HMSPR shall convey Ministerial Consent to all relevant parties, including but not limited to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Company Limited (NNPC), the ExxonMobil companies, the Federal Competition and Consumer Protection Commission (FCCPC), and Seplat Energy/Seplat Energy Offshore Limited.
The President further directed that the HMSPR shall ensure that the ExxonMobil/Seplat Energy operating entity (being MPNU) carries out operatorship of all the OMLs in the related shallow water assets to optimise production in support of Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy,” Seplat said in a statement.
