President Muhammadu Buhari has approved Seplat’s acquisition of the entire share capital of Mobil Producing Nigeria Unlimited, MPNU, from its shareholders, Mobil Development Nigeria Inc, MDNI, and Mobil Exploration Nigeria Inc, MENI, being entities of Exxon Mobil Corporation.
Seplat announced the approval in a statement on Monday, disclosing that the company 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.
According to the company, “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.”
Seplat Energy Plc is a leading indigenous energy company listed on the Nigerian Exchange and the London Stock Exchange.
The energy giant explained in the statement that Buhari gave the approval in his capacity as the Minister of Petroleum Resources, 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.
“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.
“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,” Seplat said.