Acquisition deal with ExxonMobil has not been terminated — Seplat Energy


Seplat Energy Plc has clarified that its Sale and Purchase Agreement (SPA) with ExxonMobil has not been terminated.

The clarification from the indigenous oil company follows some newspaper and social media reports that the Nigerian National Petroleum Company Ltd. (NNPC) had exercised a right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited (MPNU) Joint Operating Agreement (JOA), and as such its deal with Mobil terminated.

This was made known in a statement issued by the Chief Financial Officer of Seplat Energy Plc, Mr Emeka Onwuka, on Monday in Lagos and can be seen on the NGX website.

The statement from Onwuka reads, “Seplat Energy has become aware of newspaper and social media reports that the Nigeria National Petroleum Company Limited (NNPCL) has exercised the right of pre-emption under the NNPC/Mobil producing Nigeria Unlimited (MPNU) Joint Operation Agreement (JOA).

“The company wishes to clarify that the Special Purchase Agreement (SPA), earlier announced on February 25, deals with the acquisition of the entire share capital of MPNU’s shareholders.

“Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc., being entities of Exxon Mobil Corporation registered in Delaware (“ExxonMobil”). MPNU, is not a party to the SPA and continues to hold its interests, rights and obligations under the NNPC/MPNU JOA.

“There are also some reports that the SPA between ExxonMobil and Seplat Energy has been terminated.

“Seplat Energy confirms that no event of termination has occurred, and the SPA remains valid and subsisting.”

Onwuka said Seplat Energy was a compliant company and would continue to follow the laws of the Federal Republic of Nigeria.

Recall that on February 25, Seplat Energy Plc announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28 billion.

The transaction is reminiscent of the $1.5 billion ConocoPhillips Nigerian operation acquisition by Oando Plc in 2014.

The transaction enstails the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business. According to the notice, ExxonMobil Nigeria’s shallow water business is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd in 2020 (92% liquids).

Recall that the NNPC have set out to meet the management of Exxon Mobil Corporation on March 17, 2022, over an agreement it had with Seplat Energy Plc to acquire the entire share capital of Mobil Producing Nigeria Unlimited, Delaware for $1.28 billion.

According to the source, the state-owned oil giant has opted to exercise its Right of First Refusal (RFR) on the sale of the assets. The RFR is reportedly contained in the Joint Operating Agreement (JOA) of the Joint Venture (JV), which represents NNPC’s position on the planned sale of the shares to Seplat Energy Plc.