NNPC, MPNU sign settlement agreement for ExxonMobil-Seplat deal

The Nigerian National Petroleum Company (NNPC) Limited says it has signed a settlement agreement for the divestment of ExxonMobil’s stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc.

According to a statement on Thursday by the national oil company, the agreement was signed with MPNU, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc.

“Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. signed regarding the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited,” NNPC said.

This followed a directive from President Bola Tinubu to the ministry of state for petroleum resources (oil) and NNPC on May 28 to resolve the divestment issue delaying the Seplat and ExxonMobil deal.

The deal had been stalled for over two years.

In February 2022, Seplat announced an agreement to acquire ExxonMobil’s 40 percent stake in MPNU — with the expectation that the transaction will be closed in the second half of the year.

However, the Nigerian Upstream Petroleum Regulatory Company (NUPRC), on May 19, 2022, declined to approve Seplat’s proposed acquisition due to “overriding national interest”.

Two months later, Seplat said NNPC had won a court injunction restraining ExxonMobil from selling its assets in Nigeria.

Following the push against the deal, former President Muhammadu Buhari reversed his authorisation for the acquisition on August 10, 2022 — a few days after his initial approval.

Amid the delay in obtaining approval, in May 2023, Seplat extended the share sale and purchase agreement (SSPA) it had with ExxonMobil for the acquisition of its stake in MPNU.

On May 17, Seplat hinted that the company was making progress with the acquisition of MPNU assets — a week later, Seplat extended the SSPA.