Oil and gas companies, Seplat Energy and ExxonMobil, have extended the Share Sale and Purchase Agreement (SSPA) for the acquisition of Mobil Producing Nigeria Unlimited (MPNU).
In a statement obtained by Ripples Nigeria on Wednesday from the capital market authority, Nigerian Exchange Limited (NGX), on Wednesday, the new development was seen.
Seplat said it extended the purchase agreement to ensure there was no setback when they obtain applicable regulatory approvals.
Ripples Nigeria previously reported that the oil and gas market regulators, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company (NNPC) Limited blocked the deal.
President Muhammadu Buhari had initially given his approval to the acquisition, as the companies needed the approval of the Minister of Petroleum, a position Buhari also occupied.
However, following NUPRC’s public protest of his approval, stating that only the NUPRC has the right to approve such a deal, not Buhari, the President revoked his support for the deal.
It had been reported that NNPC Limited was interested in the MPNU shares that ExxonMobil intended to sell to Seplat. Both NNPC and ExxonMobil co-own MPNU.
With the Chief Executive Officer of Seplat, Roger Brown, hoping the company will secure the approval before the incoming government of President-elect, Bola Tinubu, on May 29, the board chairman of Seplat, Basil Omiyi said necessary actions have been taken to ensure the purchase agreement remains valid until the approval is received.
In the statement, Omiyi said: “Seplat Energy announces that it has extended with Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc. (“ExxonMobil”) the Share Sale and Purchase Agreement (“SSPA”) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (“MPNU”) (the “Transaction”), in order to preserve the Transaction pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals.
“In addition, the parties have revised the SSPA such that, in the event that applicable regulatory approvals are obtained and the Transaction closes, ExxonMobil would share in a portion of the value that would otherwise accrue to Seplat Energy in the period between the effective economic date and the completion date of the Transaction.
“The exact amount will depend on a number of factors, including production by MPNU and oil price. Except as disclosed herein, there has been no significant change in terms of the announcement dated 25 February 2022, and the headline consideration, effective date and the contingent payment structure remain unchanged.
“Seplat Energy continues to engage key stakeholders and remains committed to completing the Transaction as soon as possible.”
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