ExxonMobil-Seplat deal: NNPC, MPNU sign settlement agreement

The Nigerian National Petroleum Company (NNPC) Limited has disclosed that a settlement agreement has been signed for the divestment of ExxonMobil’s stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc.

According to a statement on Thursday by the national oil company, the agreement was signed with MPNU, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc.

“Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. signed regarding the proposed divestment of a 100 percent interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited,” NNPC said.

It would be recalled that President Bola Tinubu, on Tuesday at a meeting with a delegation from ExxonMobil Upstream Company, led by Liam Mallon, its president ordered the Ministry Of State For Petroleum Resources (Oil) and the Nigerian National Petroleum Company (NNPC) Limited to resolve the logjam.

At the meeting, Tinubu assured the delegation that the federal government is committed to resolving the divestment issues between the company and Seplat Energy, which are currently in litigation.

We have been pushing for closure on divestment issues, and I believe the other party, Seplat, is open to this,” Tinubu said.

“We are close enough to be fair and blunt with you, and we are not afraid to hear from you on better options and recommendations for the growth of the industry in Nigeria.”

The deal had been stalled for over two years.

In February 2022, Seplat announced an agreement to acquire ExxonMobil’s 40 percent stake in MPNU — with the expectation that the transaction will be closed in the second half of the year.

However, the Nigerian Upstream Petroleum Regulatory Company (NUPRC), on May 19, 2022, declined to approve Seplat’s proposed acquisition due to “overriding national interest”.