Dreal1247:
Nigeria needs an in-depth overhauling. Nigeria is a rich country with scavenging leaders.

Parachoko:
On this issue, the Government has done nothing wrong.

Laid down rules needs to be followed.

Nigerialabalaba:
BREAKING: FG Declines Consent to Seplat, Mobil Oil Producing Assets Acquisition Deal

May 19, 2022 4:39 am
Obinna Chima


The federal government declined its consent to the proposed acquisition of oil and gas assets belonging to Mobil Oil Producing Nigeria Unlimited (MPNU) by Seplat Energy.
The government among others, cited overriding national interest as one of the reasons for rejecting the deal.

The Chief Executive, Nigerian Upstream Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, stated these in two separate letters addressed to the Chairman/ Managing Director, Mobil Producing Nigeria Unlimited, Mr. Richard Laing as well as the immediate past Chairman of Seplat Energy, Dr. ABC Orjiako. Both letters obtained by THISDAY yesterday, were dated May 13, 2022.
Seplat Energy had in February this year, announced its acquisition of oil and gas assets belonging to MPNU. But the deal was subject to Ministerial Consent and other required regulatory approvals. However, few weeks after, it was reported that the Nigerian National Petroleum Company (NNPC) Limited had opted to exercise its Right of First Refusal (RFR) on the sale of the assets, which then put a hold on the transaction.


But Komolafe in the letter stressed that regardless of the mode of the transaction, Mobil Oil still remains to all intents and purposes, the assignor of the asset under the Nigerian law.

“We also note that MPNU failed to follow the procedure for assignments laid down in the Guidelines by not providing the requisite notices to the Commission at all relevant stages of the transaction. Even if the transaction has been between Seplat Energy Offshore Limited and the MPNU shareholders, responsibility to ensure compliance with Nigerian laws, rules and regulations always remain that of MPNU, the entity that was awarded the assets.

He also made reference to the multinational oil company’s letter dated March 30, 2022 with Ref: MPN-PGA-NUP-CCE-0322-0027 on the above subject matter.
Komolafe highlighted contents of the letter MPNU wrote then to the NUPRC on the proposed acquisition, and in particular, the section that stated that the transaction was between parties who were not privy to the Joint Operating Agreement (JOA) between the Nigerian National Petroleum Company (NNPC) and the MPNU dated June 28, 1990, and that does not trigger any relevant rights or obligations under the JOA for either NNPC or MPNU. Also, the MPNU had stated in the letter that the sale of shares by shareholders of MPNU would have no bearing on the consent or preferential right and option requirements of the JOA in favour of NNPC and that the NNPC does not have preferential rights in respect to the transaction.

In addition, the regulator made reference to another aspect of the letter Mobil wrote to it on the matter that, the MPNU shareholders would be proceeding with their efforts to satisfy the conditions required for the approval of the proposed transaction, and the procurement of the consent of the Minister of Petroleum Resources.
Furthermore, the Commission pointed out that: “You may also be aware that the Commission is in receipt of a letter of 10th March 2022, written by Seplat Energy to the Minister of State for Petroleum Resources, requesting the consent of the Minister of Petroleum Resources to the transaction. This letter was received by the Commission on March 30, 2022.

Please be advised that even if the transaction in question were between parties who are not privy to the JOA, MPNU remains the leaseholder of the assets subject to the transaction and the focal point of contact with the federal government of Nigeria on any matter or dealings with the assets.
“In this regard, you may wish to note that paragraph 3.1 of the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets 2021 provides, in line with extant Nigerian law, that ‘an Assignment involves the transfer of an OPL, OML, MF or OGPL or an interest, power or right therein by any company or person with equity, participating, contractual or working interest in the said OPL, OML, MF or OGPL, through merger, acquisition, take-over, divestment or any such transaction that may alter the ownership, equity, rights or interest of the assigning company in question, not minding the nature of upstream arrangement that the assigning company may be involved in, including but not limited to Joint Venture (JV), Production Sharing Contract (PSC), Production Sharing Agreement (PSA),Service Contract (SC), Sole Risk (SR) or Marginal Fields operation.’

“Also note that overriding National interest will always be the compass of the law. Paragraph 3.1.1 of the guidelines also expressly restates that assignment shall include, but not be limited to: ‘assignment by way of exchange or transfer of shares: This shall entail the acquisition of part or all of the shares of a company which holds an OPL, OML, MF or OGPL in Nigeria.”
According to the regulatory commission, until an assignment was completed, including the granting of Ministerial consent to such assignment, the leaseholder remains the registered owner of the asset and the only one with the locus to interact with the government in respect of the asset.

Also, in the letter addressed to Orjiako, the regulatory commission also highlighted relevant sections in the Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets 2021.
“Thus, regardless of the mode of the transaction, MPNU, remains, to all intents and purposes, the assignor under Nigerian law and is the proper person to bring an application for Ministerial consent to the transaction, not Seplat. Consequently, you are hereby requested to revert to MPNU, the assignor, to receive updates on your application,” it stated.


https://www.thisdaylive.com/index.php/2022/05/19/fg-declines-consent-to-seplat-mobil-oil-producing-assets-acquisition-deal/

Dreal1247:

My opinion is generally on the acquisition of assets from Government and privatisation. Just use the PHCN as a case study.

Omooba77:


I know NNPC will not sell Mobil to Seplat, it would have been disaster....
It means they would have bought former Shell assets....

SmartPolician:
Mobil Oil, an American multinational oil and gas corporation, came to Nigeria and started misbehaving like Nigerian companies. Now, they find it difficult to follow simple due process.

The management of the oil giant should comply with the necessary regulatory requirements and have Seplat initiate the deal again. $1.28 billion is a lot of money. If the government declines again, we know that there's more to this that meets the eye.

I like that Seplat is increasingly investing the East. Every part of the country deserves to grow so we don't have 200 million people concentrated in one region. This makes no sense.

Dreal1247:

My opinion is generally on the acquisition of assets from Government and privatisation. Just use the PHCN as a case study.

SirBlack999:

Hope you don't mind. Do you know any of their(seplat) investments in the east, and the cities they're in?

Penguin2:
They keep sitting on Igbos’ progress thinking they are doing us.

But they are doing themselves.

Arthur Eze knew this would happen and took his investments out of Nigeria.

Innoson knew this would happen and took his oil investment overseas too. Now he’s hit a goldmine in Sierra Leone.

That’s how they frustrated Ibeto until he took his cement business to America which is even better for him today.

I’m very much sure that if it was an aboki that reached that deal, they would have brought FG approval for him at his gate.

But because it’s an Igbo man….

Ndi ala!

Ndi uchu.

It’s just a matter of time.

BlazinGlory40:


You are the first person bringing in ethnic coloration to this article

SmartPolician:


In Imo State. Just read the details.

https://www.premiumtimesng.com/business/business-news/494829-seplat-sets-start-date-for-key-gas-processing-project-in-imo.html

MASTAkiLLAh:
Ie, someone in government is interested in those Mobil assets

Nigerialabalaba:

[s]Omo Ibo, na NNPC dey interested and dem don write am openly say dem dey interested and na dem MPNU supppse come meet first to buy am since na both of dem dey control d asset.

Make a break am down for ur sumol mind, if u and anoda ipob terrorist buy car and he go sell hin share to a non ipob terrorist, u go vex , especially if ur fellow ipob terrorist no tell u and u get d money to buy hin share. Na wetin MPNU do be dat. Nothing concern Seplat. kapish[/s]

BlazinGlory40:


You are the first person bringing in ethnic coloration to this article

Tochi3:
The case might be different if the names representing Seplat were dantatas, aminu, Mohammed .

Since that is not the case , Nigerian government now remembers what due process have to be followed.

Nigerian government with due process

LOVEALAIGBO:

Dude, anyone saying ethnic colouration isn’t a reality in the Nigerian political-economy….more so with this present Buhari gov’t, such a person is being deceitful at best!

If a well-run and accomplished indigenous oil and gas coy like SEPLAT isn’t good enough to take over those assets, then could you tell us who is!?

MASTAkiLLAh:
Ie, someone in government is interested in those Mobil assets

Penguin2:
They keep sitting on Igbos’ progress thinking they are doing us.

But they are doing themselves.

Arthur Eze knew this would happen and took his investments out of Nigeria.

Innoson knew this would happen and took his oil investment overseas too. Now he’s hit a goldmine in Sierra Leone.

That’s how they frustrated Ibeto until he took his cement business to America which is even better for him today.

I’m very much sure that if it was an aboki that reached that deal, they would have brought FG approval for him at his gate.

But because it’s an Igbo man….

Ndi ala!

Ndi uchu.

It’s just a matter of time.

ebufa:







The hatred Nigerians have for Ndigbo is not natural! the irony of it all is that a substantial part of Nigeria's oil and gas deposits are smack in Igbo land! How is it that the servant enjoys the horseback ride,whilst the Prince treks?...............we are yet to figure out the disaster that has befallen us!