Seplat: Our $1.28bn Deal with ExxonMobil Not Cancelled
Emmanuel Addeh in Abuja
Seplat Energy, an indigenous oil and gas company yesterday insisted that its deal to acquire Mobil Producing Nigeria Unlimited (MPNU) oil and gas shares subsists.
A statement by the Chief Financial Officer of the company, Mr. Emeka Onwuka, stressed that, “No event of cancellation has occurred,” explaining however, that Seplat was aware of newspaper reports that the Nigerian National Petroleum Company Limited (NNPC) had exercised a right of pre-emption.
The transaction which had created some excitement in the oil and gas industry in the country, experienced a lull after reports emerged that the NNPC was also interested in buying the assets.
The Sale and Purchase Agreement (SPA) to acquire the entire share capital of MPNU, THISDAY had reported, was for a purchase price of $1.283 billion, plus up to $300 million contingent consideration.
Although it has not officially confirmed the move, the state-owned oil giant, had opted to exercise its Right of First Refusal (RFR) on the sale of the assets, with industry sources maintaining that this could lead to a legal tussle between Seplat and the national oil company.
Right of pre-emption is a legal right to parties in a joint venture to be the first to be considered for any planned sale or takeover of assets in the JVs if either party choose to trade them off.
“Seplat Energy has become aware of newspaper and social media reports that the Nigerian National Petroleum Company Limited (NNPC) has exercised a right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited (MPNU) Joint Operating Agreement (JOA).
“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).
“MPNU, is not a party to the SPA and continues to hold its interests, rights and obligations under the NNPC/MPNU JOA,” Seplat stated in the statement.
It added that there were also some reports that the SPA between ExxonMobil and Seplat Energy had been terminated, but pointed out that, “Seplat Energy confirms that no event of termination has occurred, and the SPA remains valid and subsisting.”
According to Seplat Energy, it remains a compliant company and would 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),” it affirmed.
