Buhari okays Seplat’s buy of ExxonMobil’s Nigeria unit

PRESIDENT Muhammadu Buhari has okayed and granted consent to Seplat’s acquisition of ExxonMobil’s Nigerian unit. 

The presidency confirmed this development in a statement issued today by his Media Adviser, Femi Adesina.

According to the statement, the President granted the consent in his capacity as Minister of Petroleum Resources and, in consonance with the country’s drive for foreign direct investment (FDI) in the energy sector, okayed the acquisition of ExxonMobil shares in the United States of America by Seplat Energy Offshore Limited.

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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 Incorporated and Mobil Exploration Nigeria Incorporated, both registered in Delaware, USA.

    Buhari gave his ministerial consent to the deal citing the extensive benefits of the transaction to the Nigerian energy sector and the larger economy, especially now the federal government is struggling to meet the Organisation of Oil Producing Countries’ (OPEC) quota of 1.826 million barrels per day production.

    The statement 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.

    “Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licences 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.”

    The President further directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil.

    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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