President Muhammadu Buhari has approved the acquisition of Exxon Mobil shares by Seplat Energy Offshore Limited.
The President’s approval was contained in a statement issued by Special Adviser on Media and Publicity to the President, Mr Femi Adesina.
“In his capacity as Minister of Petroleum Resources, and in accordance with the country’s drive for Foreign Direct Investment in the energy sector, President Muhammadu Buhari has consented to Seplat Energy Offshore Limited acquiring Exxon Mobil shares in the United States of America,” the statement said.
“Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.”
In giving his approval, President Buhari considered the transaction’s extensive benefits to the country’s energy sector and economy.
“In light of the Petroleum Industry Act, the President granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all parties involved,” the statement continued.
“Exxon Mobil/Seplat are expected to operate all of the oil mining licenses in the related shallow water assets in order to optimize production and support Nigeria’s OPEC quota in the short term, as well as to ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.”
The President also mandated that environmental and abandonment liabilities be mitigated by Exxon Mobil and Seplat.
Bello Wakili
