Buhari Grants Seplat Approval For Mobil Asset Sale

By Tolulope Oke

President Muhammadu Buhari has approved for Seplat Energy Plc, one of Nigeria’s top energy companies, to purchase the Mobil Nigeria assets.

Seplat, which lists its stock on the London Stock Exchange and the Nigerian Exchange (NGX) Limited, disclosed in February that it was buying the assets of competing oil business.

The Nigerian National Petroleum Company (NNPCL) Limited, however, have been at loggerhead with Seplat, which resulted in a legal dispute.

In fact, earlier last month, The NNPCL was granted a court interim order in Abuja High Court stopping Exxon from completing any divestment in a unit that ultimately operates four licenses in the country.

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On Monday, Seplat told the investing public on Monday that the president had given the sale his approval and had instructed the NNPC and other parties to see to the transaction’s completion.

Mobil Development Nigeria and Mobil Exploration Nigeria, which are run by Exxon Mobil Corporation registered in Delaware, are selling their whole shareholding in Mobil Producing Nigeria Unlimited to Seplat for a price of $1.283 billion-plus up to $300 million in contingent consideration.

The company added that the deal will strengthen its capacity to promote more development, profitability, and overall stakeholder prosperity.