President Muhammadu Buhari, in his capacity as Minister of Petroleum Resources, has agreed to Seplat Energy Offshore Limited acquiring Exxon Mobil shares in the United States of America in accordance with the country’s quest for Foreign Direct Investment in the energy sector.
Exxon Mobil had agreed into a historic Sale and Purchase Agreement with Seplat Energy to buy the full share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, all of which were registered in Delaware, USA.
President Buhari has given Ministerial Consent to the transaction, citing the numerous advantages to the Nigerian energy industry and the greater economy.
In light of the Petroleum Industry Act, the President gave assent to the Share Sales Agreement, as sought by the parties to the transaction, and instructed that the approval be communicated to all parties concerned.
Exxon Mobil/Seplat are anticipated to operate all oil mining licences in the connected shallow sea assets in order to optimise production and support Nigeria’s OPEC quota in the short term, as well as assure expedited development and monetization of the assets’ gas potential for the Nigerian economy.
Exxon Mobil and Seplat have also been urged by President Buhari to appropriately mitigate any environmental and abandonment liabilities.