The Minister of Petroleum Resources, President Muhammadu Buhari has consented to the acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Ltd., a Nigerian outfit.
ExxonMobil, the parent company had earlier entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation of the U.S.A.
The agreement would also enable Seplat Energy to acquire share capital from Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc., both registered in Delaware, USA.
Mr Femi Adesina, the president’s spokesman stated on Monday in Abuja that the president’s consent was in consonance with Nigeria’s drive for increased indigenous participation in the energy sector.
“Considering the extensive benefits of the transaction to the Nigerian energy sector and the larger economy, President Buhari has given ministerial consent to the deal.
“The president, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties.
“He directed that his approval be conveyed to all the parties involved.
“Exxon Mobil/Seplat is expected to carry out operatorship of all the oil mining licences in the related shallow water assets towards production optimisation to support Nigeria’s OPEC quota in the short term.
“It is also expected to ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy,’’’ he stated.
Adesina quoted the minister as directing that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.