The Nigerian National Petroleum Company (NNPC) Ltd and ExxonMobil Nigeria have reached a settlement agreement concerning the proposed sale of Mobil Producing Nigeria Unlimited’s entire shareholding to Seplat Energy Offshore Ltd.
The $1.28 billion transaction deal announced in February 2022 has faced over two years of regulatory challenges.
On morning of Thursday May 30, NNPC announced, “A settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. has been signed regarding the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.”
This development is a major victory for Seplat, which aims to expand its portfolio and strengthen its position as a leading player in Nigeria’s oil industry – the largest in Africa.
The approval process, however, encountered numerous obstacles.
NNPC initially showed interest in acquiring ExxonMobil’s stake. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rejected Seplat’s deal in May 2022, and former President Muhammadu Buhari reversed his initial approval in August 2022, citing “overriding national interest“.
This development may not be unconnected with a meeting between ExxonMobil executives and Nigeria’s President Bola Tinubu on Tuesday.
President Tinubu assured his visitors of his intent to intervene in the impasse. “We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this”, he told ExxonMobil Upstream Company President. Liam Mallon.
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