₦airaland Forum

Seplat Energy Plc has finalised the $1.28bn acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil, marking a milestone in the company’s growth strategy.

In Thursday’s release signed by the Chief Executive Officer, Seplat Energy Plc, Roger Brown, the energy company announced the completion of the transaction, having been approved by President Bola Ahmed Tinubu and regulatory clearance by the Nigerian Upstream Petroleum Regulatory Commission.

Brown added that the acquisition initially stalled due to a legal challenge by the Nigerian National Petroleum Company Ltd, commenced in 2022, adding that NNPC had contested the transaction over its right of first refusal in the joint venture.

He described the transaction as a historic achievement for the company, stating, “We have acquired a company with one of the best portfolios of assets and related infrastructure in a world-class basin, providing enormous potential for the Seplat Group.

Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.

MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible, and reliable energy for Nigeria alongside attractive returns to our shareholders.”

In a statement, Seplat described the deal as “transformative,” stating that it would more than double the company’s production capacity and enhance its ability to drive growth and profitability.

Additionally, the company emphasised the acquisition’s potential to contribute significantly to Nigeria’s economic future.

Reacting to the development, Chairman, Seplat, Udoma Udoma, expressed gratitude to President Tinubu and the regulatory bodies involved.

“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.

Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the government, regulators, communities, and our staff,” he said.

niyisky:
There will be no cries about Tinubu using Oando to close the deal

femisplash:
This was a deal that was being foot dragged for more than two years. The former President, NNPCL, SEPLAT, ExxonMobil couldn't reach a deal. They had to drag themselves to court. The case was in court till Tinubu came in, soon as the issue was brought before him, he called together all parties involved. Little wonder, he has been able to successfully dismantle the barriers surrounding the deal. Kudos Mr President.

femisplash:
This was a deal that was being foot dragged for more than two years. The former President, NNPCL, SEPLAT, ExxonMobil couldn't reach a deal. They had to drag themselves to court. The case was in court till Tinubu came in, soon as the issue was brought before him, he called together all parties involved. Little wonder, he has been able to successfully dismantle the barriers surrounding the deal. Kudos Mr President.

mikeapollo:
Stop the twists and misrepresentation. Tinubu did not dismantle any barrier. It was the NNPC that went to court to challenge the sale by Mobil to Seplat because they (NNPC) believed they had the first right of refusal as agreed in the JV contract. As a compromise to settle out of court, Mobil agreed and gave additional 10percent to NNPC and sold the remaining 30percent to Seplat (instead of the initial 40percent).
That is what resolved the problem. Tinubu did not do anything special or spectacular. Stop hyping people who have not done anything !

kettykin:
I heard someone in Nnpc from the western part of the country delayed this closure for 2 years even after buhari approved it and gave his consent and he even rallied nnpc to go to court to oppose it

femisplash:
This was a deal that was being foot dragged for more than two years. The former President, NNPCL, SEPLAT, ExxonMobil couldn't reach a deal. They had to drag themselves to court. The case was in court till Tinubu came in, soon as the issue was brought before him, he called together all parties involved. Little wonder, he has been able to successfully dismantle the barriers surrounding the deal. Kudos Mr President.

2special:
keep hearing and believing whatever you hear....e go soon reach your turn

mikeapollo:
Stop the twists and misrepresentation. Tinubu did not dismantle any barrier. It was the NNPC that went to court to challenge the sale by Mobil to Seplat because they (NNPC) believed they had the first right of refusal as agreed in the JV contract. As a compromise to settle out of court, Mobil agreed and gave additional 10percent to NNPC and sold the remaining 30percent to Seplat (instead of the initial 40percent).
That is what resolved the problem. Tinubu did not do anything special or spectacular. Stop hyping people who have not done anything !

femisplash:
It's disingenuous for anyone to downplay Tinubu's
role in making this deal happened. Upon his assumption of office, he gave directive for faster approvals from the regulatory authority. He also gave similar approvals for acquisitions to Oando and Odinmim. Moreover, you're very wrong to say NNPCL got 10%. SEPLAT 's stake still stands at 40%.

Here's a like from Reuters, enlighten yourself on the declaration of the President in May, when he took over power.

https://www.reuters.com/business/energy/nigeria-approves-exxon-seplat-128-billion-deal-oil-regulator-says-2024-10-21/

mikeapollo:
Stop the twists and misrepresentation. Tinubu did not dismantle any barrier. It was the NNPC that went to court to challenge the sale by Mobil to Seplat because they (NNPC) believed they had the first right of refusal as agreed in the JV contract. As a compromise to settle out of court, Mobil agreed and gave additional 10percent to NNPC and sold the remaining 30percent to Seplat (instead of the initial 40percent).
That is what resolved the problem. Tinubu did not do anything special or spectacular. Stop hyping people who have not done anything !

SalamRushdie:
Seplat is now the new mobil

kettykin:
Thank you for this deep clarification. I remember very well nnpc blocked the deal. I now understand it was about percentage and ownershipstructure. Nnpc appears to be the issue with the Nigerian oil industry

femisplash:
This was a deal that was being foot dragged for more than two years. The former President, NNPCL, SEPLAT, ExxonMobil couldn't reach a deal. They had to drag themselves to court. The case was in court till Tinubu came in, soon as the issue was brought before him, he called together all parties involved. Little wonder, he has been able to successfully dismantle the barriers surrounding the deal. Kudos Mr President.

mikeapollo:
Go and reconfirm the new JV ratio after the settlement of the dispure.
The original ratio in the JV was Mobil 40 : NNPC 60.
After the settlement of the didpute NNPC got additional 10percent from Mobil's share, hence making a new total of 70percent and Mobil sold the balance 30percent to SEPLAT.
Reuters does not know more than NNPC/NUPRC in this matter.

femisplash:
"The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40% operated interest in OML 67, 68, 70 and 104; 40% operated interest in the Qua Iboe export terminal and the Yoho FSO; 51% operated interest in the Bonny River Terminal (BRT) NGL recovery plant; 9.6% participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.

seunmsg:
I thought you said it was a Yoruba man in NNPC that blocked the deal. You see, this is why it is not advisable to always assist people from the south east. The level of your lies and ingratitude is just crass.

The Buhari administration through NNPC blocked the deal and took the intervention of the Tinubu administration to negotiate a truce and get everything resolved. Instead of showing gratitude, you started by lying that a Yoruba man singlehandedly blocked the deal and later moved to claim it was the 10% given to NNPC that solved the problem. Why did NNPC under Buhari not accept 10% as a compromise?

If this was Oando or any company linked to a Yoruba business man, you louts would be everywhere by now yelling at the topmost of your voice about how Tinubu is cornering all Nigerian assets. Bunch of hypocrites.

kettykin:
Gbenga Komolafe blocked it.https://www.arise.tv/nuprc-stands-firm-on-mobil-seplat-no-deal-insists-status-quo-remains/

Nobody is asking you people for any help

mikeapollo:
https://africaoilgasreport.com/2024/05/farm-in-farm-out/nnpc-to-hold-70-of-the-jv-as-the-exxonmobil-seplat-transaction-comes-to-a-close/

NNPC got 10percent more, SEPLAT share is now 30percent instead of 40percent. That is what settled the issue.

kettykin:
Gbenga Komolafe blocked it.https://www.arise.tv/nuprc-stands-firm-on-mobil-seplat-no-deal-insists-status-quo-remains/

Nobody is asking you people for any help

PressMyButton:
So, who's the boss.. Komolafe or Buhari?. Komolafe can override Buhari?. Ipob sef.

seunmsg:
Gbenga Komolafe is not NUPRC so stop this disingenuous bigotry. NUPRC blocked the deal because of objection raised by NNPC. Gbenga Komolafe is an employee of the Buhari administration. It was the decision of the Buhari government to block the deal through NUPRC which is the regulatory agency for the upstream sector.

kettykin:
Please read the news in the link