Seplat Energy Plc has announced an extension of the share sale and purchase agreement (SSPA) for the acquisition of ExxonMobil’s share capital in Mobil Producing Nigeria Unlimited (MPNU).
This was contained in the company’s notice to the Nigerian Exchange Limited seen by Nairametrics on Thursday.
According to Seplat, the extension aims to maintain the transaction pending the resolution of certain legal proceedings and the receipt of necessary regulatory approvals.
A statement signed by Chief Executive Officer, Mr. Roger Brown, said the company noted that there have been no significant changes to the terms initially announced on 25 February 2022 and reaffirmed on 24 May 2023.
The statement read:
“Seplat Energy Plc 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), in order to preserve the Transaction pending the resolution of certain legal proceedings and receipt of applicable regulatory approvals.
There has been no material change in terms of the announcements dated 25 February 2022 and 24 May 2023.”
The company said that the headline consideration, effective date and contingent payment structure remain unchanged, adding that Seplat Energy continues to engage key stakeholders and remains committed to completing the transaction as soon as possible.
What you should know
In February 2022, Seplat Energy Plc reached an agreement to acquire the assets of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for approximately $1.28 billion. This transaction includes the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business.
- As required by law, former President Muhammadu Buhari approved the deal in his capacity as Minister of Petroleum Resources, stating that it aligned with the nation’s ambition to attract investment in the petroleum and gas industry.
- Despite this approval, the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, declined to endorse the deal. Komolafe asserted that the NUPRC is the sole regulator authorized to approve such transactions.
- This regulatory impasse has led to a series of delays and complications, halting investment in the assets involved and impacting other potential deals in the oil and gas sector.
- In 2023, Seplat’s CEO, Roger Brown, reiterated the company’s commitment to completing the acquisition, especially with the new administration under President Bola Tinubu adopting a different approach. Brown described the embattled acquisition as a “game-changing operation.”
- Seplat Energy continues to navigate the regulatory landscape to finalize this strategic transaction, which holds significant implications for the future of Nigeria’s oil and gas industry.
Seplat Energy closed trading on Thursday, May 23, 2024, at N3,000.00 per share on the Nigerian Stock Exchange (NGX), recording a 1.3% gain over its previous closing price of N2,962.20.
The company began the year with a share price of N2,310.00 and has since gained 29.9% on the price valuation.