Sopuruchi Onwuka

Indigenous energy independent multinational, Seplat Energy Plc, is finally on its way to become a major player in the Nigerian petroleum industry following eventual ministerial approval for the company to proceed with acquisition of a local upstream affiliate of ExxonMobil.

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Spokesperson, Dr Chioma Nwachuku, declared in a statement Monday that Seplat received the cheery news in a letter from the Minister of State for Petroleum Resources, Chief Timipre Sylva, notifying that President Muhammadu Buhari has cleared to deal to proceed.

The Oracle Today reports that acquisition transactions in petroleum assets in Nigeria require ministerial approval without which such deals would not happen. And President Muhammadu Buhari remains the substantive Minister of Petroleum Resources who presides over the nation’s hydrocarbon lease administrator, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The presidential assent for the deal is seen as positive surprise to analysts who had expected eruption of industrial dispute and associated legal fireworks among parties whose interests clash.

The Oracle Today reports that the acquisition of MPNU has remained a table shaking phenomenon that have captured global attention due to its unique model which targets the company along with the operated assets. The mould of the transaction has also made it less vulnerable to external influence.

 The Nigerian National Petroleum Company (NNPC) Limited had risen against the deal to the consternation of the industry, forcing the junior minister to turn down initial request for consent. And many analysts projected that the interference of the national oil company was setting the stage for legal battle.

In a surprising twist, Seplat Energy Plc announced that it received a letter from the Honourable Minister of State for Petroleum Resources notifying it that President Buhari “has graciously approved that Ministerial Consent be granted to Seplat Energy Offshore Limited’s cash acquisition of the entire share capital of Mobil Producing Nigeria Unlimited from its shareholders, Mobil Development Nigeria Inc and Mobil Exploration Nigeria Inc, being entities of Exxon Mobil Corporation registered in Delaware, USA.

Seplat Energy Plc Plc is a leading indigenous Nigerian energy company with a strategic focus on Nigeria, listed on the Premium Board of the Nigerian Exchange Limited and the Main Market of the London Stock Exchange. 

The company has not minced words about its determination to pursue a Nigeria focused growth strategy and its intentions to participate in future divestment programmes by the international oil companies, farm-in opportunities and future licensing rounds. 

“As announced on 25 February 2022, Seplat Energy had agreed to acquire the entire share capital of MPNU for a purchase price of $1.283 billion plus up to $300 million contingent consideration. The transformational transaction will create one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, and bolster Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity.

“The approval is given by His Excellency, President Muhammadu Buhari in his capacity as the Honourable Minister of Petroleum Resources (“HMPR”), with the granting of Ministerial Consent pursuant to the powers of the Minister under Paragraphs 14-16 of the First Schedule of the Petroleum Act, 1969. A separate announcement from the State House was released earlier.

“In the letter, the President as HMPR directed that the HMSPR shall convey Ministerial Consent to all relevant parties, including but not limited to the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”), the Nigerian National Petroleum Company Limited (“NNPC”), the ExxonMobil companies, the Federal Competition and Consumer Protection Commission (“FCCPC”), and Seplat Energy/Seplat Energy Offshore Limited. The President further directed that the HMSPR shall ensure that the ExxonMobil/Seplat Energy operating entity (being MPNU) carries out operatorship of all the OMLs in the related shallow water assets to optimise production in support of Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy,” Dr Nwachuku stated.

The Board and Management of Seplat Energy thank His Excellency, President Muhammadu Buhari, for the Ministerial Consent to this landmark acquisition of the entire share capital of MPNU, she declared.