‘There’s no cancellation’ — Seplat Energy says ExxonMobil deal still intact

Seplat Energy Plc says its deal with ExxonMobil Corporation is valid and subsisting.

Seplat Energy responded to media reports which claimed the Nigerian National Petroleum Company (NNPC) Limited had exercised a right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited (MPNU) joint operating agreement (JOA). 

Emeka Onwuka, Seplat’s chief financial officer, clarified a statement on Monday.

According to the statement, Seplat said MPNU is not involved in the sales agreement and continues to hold its interests, rights and obligations under the NNPC/MPNU joint operating agreement.

“The Company wishes to clarify that the Sale and Purchase Agreement (“SPA”), earlier announced on the 25 February 2022, deals with the acquisition of the entire share capital of MPNU’s shareholders, Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc., being entities of Exxon Mobil Corporation registered in Delaware (“ExxonMobil”),” the statement reads. 

“MPNU is not a party to the SPA and continues to hold its interests, rights and obligations under the NNPC/MPNU JOA.

“There are also some reports that the SPA between ExxonMobil and Seplat Energy has been terminated. 

“Seplat Energy confirms that no event of termination has occurred, and the SPA remains valid and subsisting.

“Seplat Energy is a compliant company and will continue to follow the laws of the Federal Republic of Nigeria.

“This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule).”

Seplat had said it would acquire the entire share capital at a purchase price of $1.283 billion, plus up to $300 million contingent consideration.