Buhari okays acquisition of Exxon Mobil shares by Seplat

Buhari okays acquisition of Exxon Mobil shares by Seplat

President Muhammadu Buhari has consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.

The authorisation came in his capacity as the Minister of Petroleum Resources and in line with the country’s drive for Foreign Direct Investment in the energy sector, the president said.

A statement by Femi Adesina, Special Adviser on Media and Publicity to the President indicated that Exxon Mobil had 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, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.

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.

In line with the Petroleum Industry Act, the President granted consent to the Share Sales Agreement, as requested by the parties to the transaction and directed that the approval be conveyed to all the parties involved.

Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licenses in the related shallow water assets towards production optimization to support Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.

President Buhari also directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.