President Bola Tinubu said the ExxonMobil-Seplat divestment will receive ministerial approval soon.
The president disclosed this in a nationwide broadcast on Tuesday to mark Nigeria’s 64th independence anniversary.
He said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had, in line with the Petroleum Industry Act (PIA), approved the agreement involving ExxonMobil’s sale of its offshore assets to Seplat Energy.
“Our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes.
“This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector,” he said.
Tinubu added that the “move will create vibrancy and increase oil and gas production, positively impacting our economy.”
It would be recalled that on February 25 2022, Seplat Energy Plc had disclosed its plan to purchase all shares of MPNU from ExxonMobil Corporation, Delaware for $1.28 billion, which will legally put the former in position to take over ExxonMobil Nigeria’s offshore shallow water operations.
Not comfortable with the deal, the Nigerian National Petroleum Company Limited (NNPC) decided invoked its right of first refusal regarding the deal and in May of that year, the federal government disapproved the deal based on what it termed overriding national interest.
Similarly, A Federal High Court in Abuja had on July 6, 2022 issued an “order of interim injunction” that prohibits ExxonMobil Corporation from finalising any divestment in MNPU that holds four licenses in Nigeria.
The matter was settled politically when Tinubu met with the president of ExxonMobil, Liam Mallon, and other executives of the company, during which he assured the team of amicable resolution of the lingering dispute on the ExxonMobil-Seplat deal.
“We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this,” he said.
