* After NUPRC raised objection
President Muhammadu Buhari has reportedly reversed his approval of Seplat Energy’s purchase of ExxonMobil’s Assets.
The reversal came barely 48 hours after a statement reportedly issued by the President ‘s spokesperson, Mr. Femi Adesina, had indicated that Buhari had approved the transaction.
Seplat Energy Plc had in February this year announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware, USA, for $1.28billion.
The transaction entails the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business.
According to the deal, ExxonMobil Nigeria’s shallow water business is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations.
The Nigerian National Petroleum Company Limited has a pre-emptive right over the asset and had last month won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy Plc.
A judge in Abuja had granted NNPC an “order of interim injunction” on July 6, 2022, barring Exxon Mobil “from completing any divestment” in a unit that ultimately operates four licenses in Nigeria.
Despite the verdict of the Court, reports emerged on Monday that President Muhammadu Buhari had approved that the deal be consummated by Mobil and Seplat.
The Presidency’s announcement of the approval of the deal took many industry players by surprise because the transaction had initially been declined on July 5 this year by the President who is himself the Minister of Petroleum Resources.
But reacting to the development, the President ‘s Spokesperson Garba Shehu told PREMIUM TIMES that the President has taken a decision that the position of the Nigerian Upstream Petroleum Regulatory Commission be supported.
He said the earlier confusion was because “various agencies involved in (the) decision had not coordinated well among themselves.
“It has become clear that the various agencies involved in the decision had not coordinated well among themselves and having looked at all of the facts with all of the ramifications, the president decided the position of the regulator is to be supported.”
The Chief Executive of the NUPRC Engr. Gbenga Komolafe had insisted that the Commission, in line with the provisions of the Petroleum Industry Act 2021, is the sole regulator in dealing with such matters in the Nigerian upstream sector.
In a statement personally signed by Komolafe on Monday, the NUPRC boss argued that the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard.
In line with the decline of ministerial assent, he declared that the status quo must remain.
The statement read: “The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) affirms that status quo remains in respect of ExxonMobil/Seplat Energy share acquisition.
“The Chief Executive of the NUPRC Engr. Gbenga Komolafe clarified that the Commission in line with the provisions of the Petroleum Industry Act 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.
“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. As such the Commission further affirms that the status quo remains.
“The Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector.”