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Seplat seeks clarification on ExxonMobil deal — after Buhari reversed approval

Seplat seeks clarification on ExxonMobil deal — after Buhari reversed approval
August 11
17:27 2022

Seplat Energy says it is seeking clarification on the reversal of approval by President Muhammadu Buhari for its acquisition of ExxonMobil Corporation assets. 

Emeka Onwuka, chief financial officer, Seplat Energy, disclosed this in a corporate filing on Thursday. 

The company said it is still in talks with relevant authorities to confirm the latest development, adding that it had not received official notification regarding the reversal. 

“Seplat Energy has become aware of a news report that Ministerial Approval of the company’s proposed acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (“MPNU”) has been withdrawn,” the statement reads. 

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“Seplat Energy has received no official notification of such a decision and is seeking clarification from the relevant authorities. We will continue to work with all parties to achieve a successful outcome for the proposed acquisition and will provide an update in due course.

“This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).”

President Muhammadu Buhari, on Wednesday, reversed his authorisation of the acquisition of ExxonMobil Corporation assets by the company – a few days after his initial approval

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Garba Shehu, presidential spokesperson, said the reversal was made to support the position of the upstream regulator — which frowned at the president’s approval. 

In May, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) declined to approve the proposed acquisition due to “overriding national interest”.

Described as the first post-PIA acquisition deal, Seplat Energy plans to acquire Mobil Producing Oil assets from ExxonMobil for $1.3 billion.

But the deal was blocked by Nigerian National Petroleum Company (NNPC) Limited.

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