Controversy trails Buhari’s approval of ExxonMobil, Seplat assets acquisition deal

… As Upstream Regulator’s CEO rejects assent

…Ministerial assent completes transfer deal — Official

By Uthman Salami

The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Engr Gbenga Komolafe has disagreed with President, Muhammadu Buhari over the approval of acquisition of ExxonMobil shares by Seplat Energy Offshore limited.

The regulatory Agency’s boss insisted, contrary to the president’s earlier pronouncement, that the decision to decline assent to the transfer of ExxonMobil shares to Seplat Energy Offshore Limited remained.

Recall that the President, Muhammadu Buhari had earlier consented to the acquisition of the shares of Exxon Mobil Nigerian unit by Seplat Energy Limited.

The Special Adviser to the President on Media and Publicity, Femi Adesina, in a statement, said the President gave his approval in his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment in the energy sector.

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.

“The President, in commitment to investment drive in light of the Petroleum Industry Act, 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 optimisation 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.”

While speaking exclusively with a national Newspaper (not this paper), Komolafe said: “The Commission as the Upstream Regulator under the Petroleum Industry Act is fully vested with the powers to deal with such issues and the Commission has communicated its position to ExxonMobil months ago.

“It’s purely a regulatory issue. There hasn’t been a change and the status quo remains and the Commission operates purely in line with the provisions of the PIA,” he added.

A leading official  in Seplat Petroleum expressed joy and thanked all stakeholders for their support. He added that what Seplat needed has been achieved with the Ministerial consent.