Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has ordered that status quo be maintained over the reported acquisition of shares of Mobil Producing Nigeria Unlimited, including Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA by the Seplat Energy Offshore Limited.
This followed the controversy which erupted barely 24 hours after President Muhamadu Buhari had approved the deal in his position as the Minister of Petroleum Resources, Monday.
According to the NUPRC Chief Executive, Mr Gbenga Komolafe, who made this known in a statement in Abuja, Tuesday, ‘status quo remains in respect to ExxonMobil/Seplat Energy share acquisition.’
President Buhari, had, Monday, in a statement issued by his Media and Publicity aide, Mr Femi Adesina, consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.
“This is in consonance with the Nigeria’s drive for Foreign Direct Investment in the energy sector,
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.
“Considering the extensive benefits of the transaction to the Nigerian Energy sector and the larger economy, President Buhari has therefore, given Ministerial Consent to the deal.
“The President, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all the parties involved.
“Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licenses in the related shallow water assets towards production optimization to support Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.
“President Buhari also directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat,” he statement read.
However, barely hours after the approval, the Akwa Ibom State Government, through its Attorney-General, Uko Essien Udom, SAN, issued a caveat, alerting all parties that ‘the proposed transaction is subject to restraining orders of injunction of the High Court of Akwa Ibom State.’
“Our attention has been drawn to a publication by Femi Adesina, Special Adviser to the President (Media and Publicity), to the effect that President Muhammadu Buhari, in his capacity as Minister of Petroleum Resources has consented to the acquisition of shallow water assets of Mobil Producing Nigeria Unlimited by Seplat Energy.
“This is to inform the general public that this proposed transaction is subject to restraining orders of injunction of the High Court of Akwa Ibom State, sitting in Uyo in Suits No. HEK/56/2018, ATTORNEY GENERAL OF AKWA IBOM STATE V. MOBIL PRODUCING NIGERIA UNLIMITED and HU/209/2020, MOBIL PRODUCING NIGERIA UNLIMITED V. GOVERNOR OF AKWA IBOM STATE & 3 OTHERS. Exxonmobil, Seplat Energy, NNPC Ltd and the Federal Government of Nigeria, all have actual knowledge of the court orders, having been duly served with the orders and/or various newspaper publications of same.
“This executive interference with the judicial process of a court of competent jurisdiction is sad and ill-advised, and is contemptuous of the High Court of Akwa Ibom State. The State urges the Nigerian Upstream Petroleum Regulatory Commission to take the above facts into consideration as it considers its position in this matter.
“TAKE NOTICE THEREFORE that anyone who deals with the shares or assets of Mobil Producing Nigeria Unlimited during the subsistence of the said orders and in the pendency of the above suits does so at their own risk. Let the buyer beware”, the Attorney General said in the statement.
Reacting to the developing controversy, the NUPRC Chief Executive, Mr Gbenga Komolafe, said in the statement that the agency, in line with provisions of the Petroleum Industry Act 2021, was the sole regulator in dealing with such matters in Nigerian upstream sector.
He said as it were, the issue at stake was purely a regulatory matter and the commission had earlier communicated the decline of Ministerial Assent to ExxonMobil in this regard.
“That position remains the status quo and to the best of our knowledge as a regulator nothing has changed.
“The Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector,” Komolafe said.
“ExxonMobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from ExxonMobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, registered in Delaware, USA.
“Considering the extensive benefits of the transaction to the Nigerian energy sector and the larger economy, President Buhari has given ministerial consent to the deal.
“The President, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all the parties involved,” Komolafe continued.