Yemisi Izuora
Confusion is still trailing the agreement announced by Mobil Producing Nigeria Unlimited, for the sale of its equity interest in its shallow-water business, to Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary, Seplat Energy Offshore Limited.
ExxonMobil penultimate Friday, issued a statement saying that it had reached an agreement to sell its equity interest in its shallow-water business, Mobil Producing Nigeria Unlimited, to Seplat Energy.
ExxonMobil, however, said that it would retain its deepwater assets, adding that the sale of MPNU supported the company’s investment strategy and Nigeria’s efforts to enhance industry participation.
It said the transaction would close later this year pending regulatory approvals, according to the statement issued by the Manager, Media and Communications, MPNU, Oge Udeagha.
The President, ExxonMobil Upstream Oil and Gas, Liam Mallon, said, “This sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.
“We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximise the value from our deepwater operations.”
The oil firm said when finalised, the sale would include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which hold a 40 per cent stake in four oil mining licences.
According to the statement, the licences include more than 90 shallow-water and onshore platforms and 300 producing wells.
But in a swift reaction, the Nigerian National Petroleum Company, NNPC’, Limited which is the major shareholder in the Joint Ventures with ExxonMobil, said it is exercising its right of first refusal on the assets as part of a new era which will focus solely on building the long term profitability of the NNPC Ltd.
According to reports, NNPC, has formerly conveyed its decision to exercise its rights and match any offer by interested parties for the assets following ExxonMobil decision to receive bids for their share of the JV.
Seplat Energy subsequently put forward a winning bid for the assets and reached an Agreement with ExxonMobil.
Right of pre-emption is a legal right to parties in a joint venture to be the first to be considered for any planned sale or takeover of assets in the JVs if either parties choose to trade them off.
In a letter by signed by Group Managing Director, NNPC, Mele Kyari, and addressed to ExxonMobil, the NNPC reiterated its resolve to take over the ExxonMobil’s share of the assets.
Only on Monday, Seplat Energy in a statement denied newspaper and social media reports that the NNPC, has exercised a right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited, MPNU, Joint Operating Agreement, JOA.
The Company in the statement noted that the Sale and Purchase Agreement, SPA, earlier announced on the 25 February 2022, 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.
“Seplat Energy is a compliant company and will continue to follow the laws of the Federal Republic of Nigeria.
“This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).” the statement added.
But when contacted by this news platform, Media and Communications, MPNU, Oge Udeagha, declined comment on the development.
Udeagha, told Oriental News Nigeria, that he has no comment regarding the statement issued by Seplat.