The Chief Financial Officer (CFO) of Seplat, Emeka Onwuka, has debunked reports suggesting that the deal between the company and ExxonMobil has been blocked by the National Petroleum Corporation (NNPC) Limited.
Seplat reached an agreement with ExxonMobil to acquire the foreign investor’s stake in Mobil Producing Nigeria Unlimited (MPNU) on February 25.
The deal will see the Nigerian company takeover the shallow water business of MPNU.
But the completion of the deal subject to ministerial approval.
Ripples Nigeria gathered that NNPC was blocking the deal by exercising its right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited Joint Operating Agreement involving ExxonMobil.
Another issue said to be delaying the deal was the divestment requirement for exiting investor in the upstream sector of the oil and gas industry.
In a statement filed and sent to the Nigerian Exchange Limited (NGX) and investing public on Monday, Onwuka said the deal is not on the verge of collapse.
He said: “The acquisition of the entire share capital of MPNU’s shareholders, Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc., being entities of Exxon Mobil Corporation registered in Delaware (ExxonMobil). MPNU, is not a party to the SPA and continues to hold its interests, rights and obligations under the NNPC/MPNU JOA.
“There are also some reports that the SPA between ExxonMobil and Seplat Energy has been terminated. Seplat Energy confirms that no event of termination has occurred, and the SPA remains valid and subsisting.”