SEPLAT Energy has extended the share sale and purchase agreement of $1.28 billion to acquire ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU).

The indigenous energy company disclosed this in a statement signed by its Chief Executive Officer, Roger Brown, on Thursday, May 23, 2024 without reference to the period the extension will last.

It stated, however, that the extension would enable Seplat Energy to get the necessary approvals and settle pending legal issues on the acquisition.

“Seplat Energy announces that it has extended with Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc. (“ExxonMobil”) the Share Sale and Purchase Agreement (“SSPA”) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (“MPNU”) (the “Transaction”), in order to preserve the Transaction pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals.

“There has been no material change in terms of the announcements dated 25 February 2022 and 24 May 2023. The headline consideration, effective date and the contingent payment structure remain unchanged. Seplat Energy continues to engage key stakeholders and remains committed to completing the Transaction as soon as possible,” the statement read.

A former Nigerian President Muhammadu Buhari had in August 2022 approved the acquisition of ExxonMobil’s assets by Seplat Energy.

At the time, energy experts told The ICIR that the proposed acquisition violated Petroleum Industry Act (PIA) provisions and that the legal tussles that arose did not inspire investors’ confidence.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also issued a statement that faulted Buhari’s consent and stated that the commission has the sole authority to deal with such matters in the Nigerian upstream sector.

Although the dust raised on the acquisition has yet to settle amid court cases, the current administration of President Bola Tinubu has expressed commitment to close the deal.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, said this in April this year at the Nigerian Exchange Limited event on ‘the facts behind the figures presentation’ of Seplat Energy to mark a decade of the oil company listing on the exchange.

The ICIR reports that MPNU is ExxonMobil’s Nigerian offshore shallow water business, having gas and oil reserves in the country.

The $1.28 billion pre-purchase agreement was signed between Seplat and ExxonMobil in February 2022, plus a contingent payment of up to $300 million.

The deal has, however, not been completed, because the Nigerian National Petroleum Company Limited (NNPCL) had won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy.