Seplat extends timeframe to acquire Mobil Producing Nigeria

Seplat Energy says it has extended the share sale and purchase agreement (SSPA) for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited (MPNU).

Roger Brown, chief executive officer (CEO) of Seplat, announced in a statement on Thursday.

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.

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 the Nigerian National Petroleum Company (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, Seplat extended the SSPA for the acquisition of MPNU in May 2023.

A year later, Brown said the SSPA has been extended again to ensure that certain legal proceedings are resolved and necessary regulatory permissions are obtained.

“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,” Brown said.

“There has been no material change in terms of the announcements dated 25 February 2022 and 24 May 2023.

“The headline consideration, effective date and the contingent payment structure remain unchanged.” 

Seplat Energy said it will continue to engage key stakeholders, expressing commitment to completing the transaction as soon as possible.