President Bola Tinubu has announced that the ExxonMobil deal with Seplat Energy is expected to receive ministerial approval soon.
Gatekeepers News reports that the transaction, which involves Seplat Energy acquiring the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.3 billion, has been the subject of legal disputes.
The Nigerian National Petroleum Company (NNPC) Limited initially filed a lawsuit to block the deal on July 5, 2022, leading to the referral of the transaction to arbitration by the court on August 3, 2022.
However, following a directive from the president to the ministry of state for petroleum resources (oil) and NNPC on May 28, a settlement agreement was signed on May 30, resolving the divestment issue and clearing the way for the approval of the Seplat and ExxonMobil deal.
In his Independence Day address on Tuesday, President Tinubu emphasised that the transaction is in line with the government’s commitment to promoting free enterprise while upholding the integrity of regulatory processes.
“Our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes,” Tinubu said.
“This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively.
“As such, the ExxonMobil-Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
