The Nigerian oil and gas company has signed an agreement with ExxonMobil to acquire the latter’s 100% equity interest in MPNU at a price of $1.283bn, along with up to $300m contingent payment
Seplat Energy to acquire Exxon Mobil unit. (Credit: Peter H from Pixabay)
Nigeria-based independent oil and gas company Seplat Energy has secured ‘Ministerial Consent’ for its proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU).
Seplat Energy has received a letter from Nigeria’s Honourable Minister of State for Petroleum Resources (HMSPR), which confirmed that President Muhammadu Buhari has approved the granting of Ministerial Consent.
Earlier this year, the Nigerian oil and gas company signed an agreement with ExxonMobil to acquire the latter’s equity interest in MNPU.
Under the terms of the agreement, Seplat Energy, through its subsidiary Seplat Energy Offshore, will acquire 100% shares of MPNU at a price of $1.283bn, along with up to $300m contingent payment.
It will acquire MPNU from Mobil Development Nigeria (MDNI) and Mobil Exploration Nigeria (MENI), which are in turn owned by US-based oil and gas corporation ExxonMobil.
MPNU holds a 40% stake in four oil mining licenses, including more than 90 shallow-water and onshore platforms and 300 producing wells, according to Seplat Energy.
Seplat Energy said in its statement: “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.”
HMSPR has informed all the relevant parties about the Ministerial Consent.
The parties include Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Company (NNPC), the ExxonMobil companies, the Federal Competition and Consumer Protection Commission (FCCPC), and Seplat Energy.
Furthermore, the Nigerian President addressed that the HMSPR shall ensure that the combined entity should operate all the OMLs in the related shallow water assets.