Seplat affirms presidential consent for acquisition of Mobil

Onome Amuge

Seplat Energy Plc has disclosed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that President Bola Tinubu, who is also the Minister of Petroleum Resources, has consented to the company’s planned acquisition of Mobil Producing Nigeria Unlimited (MPNU), including all of its issued share capital.

Roger Brown, Seplat Energy’s chief executive officer, expressed gratitude to President Tinubu for granting the approval, and acknowledged the assistance and dedication of various ministries and regulators in facilitating the transaction.

Seplat Energy, in a statement, noted that further announcements will be made as and when appropriate, following regulatory requirements.

In a recent development, the Nigerian National Petroleum Company Limited (NNPC) filed a motion to discontinue its legal action against several Mobil Nigeria subsidiaries and the NUPRC.

The motion filed by the NNPC on June 11, 2024, seeking to discontinue legal action against Mobil Nigeria subsidiaries and the NUPRC, is understood to be part of a broader agreement to finalize a settlement related to the divestment of Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited.

The filing of the motion by NNPC marks a potential resolution to the legal battle surrounding the planned acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Plc, which was first announced in February 2022.

The $1.28bn deal initially sparked a legal dispute with NNPC, as the company asserted its preferential rights under a Joint Operating Agreement with ExxonMobil Corporation, which was seeking to divest from MPNU.

In its motion, the NNPC requested the court to grant it permission to discontinue the legal action against Mobil Nigeria subsidiaries and the Nigerian Upstream Petroleum Regulatory Commission , and to strike out the case, reserving the option to re-list if the settlement process is unsuccessful.

NNPC’s legal counsel underscored that the application to discontinue the case against Mobil subsidiaries and NUPRC is in line with Order 24 of the High Court of the Federal Capital Territory Civil Procedure Rules 2018.

Moreover, they emphasised that this legal step is vital for the successful completion of the settlement process, ensuring that all parties involved in the case can move forward towards a mutually agreeable resolution.

The legal proceedings initiated by NNPC against Mobil subsidiaries and NUPRC with the filing of a lawsuit on July 5, 2022, were initially referred for arbitration on August 3, 2022.

However, recent developments suggest that the parties involved have decided to resolve their dispute outside of court, by entering into a Settlement Agreement that mandates NNPC to withdraw the case in order to complete the settlement process.