President Bola Tinubu says the ExxonMobil and Seplat divestment transactions will get ministerial approval soon.
The president disclosed this in his Independence broadcast on Tuesday, saying the divestment process had been approved by the Nigerian Upstream Petroleum Regulatory Commission in line with the Petroleum Industry Act.
Tinubu disclosed that the divestment process was done in the same manner as other qualified divestments approved in the sector.
Tinubu stressed that his administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of the nation’s regulatory processes.
This principle, he said, guides the divestment transactions in the upstream petroleum sector, where he promised his commitment to changing the fortune positively.
“As such, the ExxonMobil-Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
He said the move will create vibrancy and increase oil and gas production, positively impacting Nigeria’s economy.
In February 2022, Seplat Energy agreed to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.3 billion.
The Nigerian National Petroleum Company (NNPC) Limited blocked the deal with a lawsuit filed on July 5, 2022.
The transaction was subsequently referred to arbitration by the court on August 3, 2022.
Settling out of court on May 30, the NNPC signed a settlement agreement for the divestment of ExxonMobil’s stake in MPNU to Seplat Energy.
The settlement followed a directive from the president 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.
