Shortly after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) nullified the approval of the Seplat-ExxonMobil deal by President Muhammadu Buhari, the president reversed his authorization.
Nigeria’s upstream petroleum regulator had said the president has no right to approve the transaction as it requires regulatory approval.
Presidential spokesperson, Garba Shehu, told Premium Times on Wednesday that the president has decided to support the position of the NUPRC in the deal.
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According to him, previous confusion was because “various agencies involved in (the) decision had not coordinated well among themselves”.
When TheCable asked if there would be proper communication over the issue, he said “I have no statement to issue”.
The deal would have seen Seplat Energy Plc acquiring the entire share capital of Mobil Producing Nigeria Unlimited (MPNU), a local unit of ExxonMobil Corporation, for $1.3 billion.
The deal, which was consummated in February, became a subject of dispute on Monday after Buhari gave his approval.
The Nigerian National Petroleum Corporation (NNPC) had on July 6, obtained a court judgment to halt the deal. The NNPC’s prayer was for the court to declare that a conflict happened between the state-owned oil company and MPNU over the “interpretation of preemption rights under their Joint Operating Agreement (“JOA”) and order NNPC and MPNU to arbitration as required by the JOA.”
But Seplat Energy had argued that neither itself nor Seplat Energy Offshore Limited was a party in the lawsuit, and insisted the share purchase agreement remained valid.
In a corporate filing on Wednesday, Seplat Energy said it secured all the relevant approvals and followed due process in the acquisition of the assets.
“Seplat Energy has become aware of news and social media reports alleging impropriety in the process of securing ministerial consent to the acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited.
“Such reports are wholly untrue, and the company will pursue legal action against any parties involved in disseminating false information related to its business,” the statement reads.
It is not clear the next direction the deal will take since the presidential spokesperson didn’t provide further details in his statement. However, the NUPRC has maintained that the deal is subject to regulatory approval.
“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. As such the Commission further affirms that the status quo remains,” the regulatory body said.