$1.28bn Divestment: Seplat Confirms Receiving Notification of NNPC’s Termination of Court Case

Emmanuel Addeh in Abuja

Seplat Energy yesterday confirmed that it had received a notification to the effect that the Nigerian National Petroleum Company Limited (NNPC) had terminated its court case attempting to halt the $1.28 billion deal with ExxonMobil.

A brief statement signed by the indigenous oil company’s Chief Executive Officer, Mr. Roger Brown, noted that, it would, following the development, now proceed to quickly conclude the oil assets’ sale deal which was first announced in February 2022.

Seplat expressed excitement that its acquisition of ExxonMobil’s Nigerian shallow water oil assets, will now progress after the hurdle was removed.

State oil company, the NNPC had challenged Exxon’s sale of the assets to Seplat, saying it had first right of refusal. The deal was further held up by regulatory issues.

“Seplat Energy commends the open cooperation and progress achieved by all stakeholders, and will diligently engage all key stakeholders, including the government, in progressing towards a swift completion of the acquisition,” the Seplat statement said.

The Exxon-Seplat deal when concluded, is expected to inject the much-needed capital into Nigeria’s oil industry, potentially leading to improved output. It would also signal to investors that similar deals, such as Shell’s asset sale to Renaissance in January, are likely to gain regulatory approval.

Nigeria, Africa’s biggest oil producer, relies on crude oil for more than 90 per cent of its foreign exchange and half its budget. However, output has declined in recent years owing to underinvestment and theft.

Oil majors operating in Nigeria, including Shell and TotalEnergies have been exiting their onshore shallow water operations to focus on deepwater drilling operations.

“Seplat Energy notes the announcement on the 30 May 2024 by the NNPC regarding the settlement agreement between NNPC, ExxonMobil Corporation, Delaware and Mobil Producing Nigeria Unlimited (MPNU) and has since been notified of the termination of the court proceedings brought by NNPC against MPNU and its affiliates over the proposed divestment of MPNU’s shares to Seplat Energy Offshore Limited (SEOL),” the statement noted.

Seplat is one of Nigeria’s leading indigenous energy companies. Listed on the Nigerian Exchange Limited and the Main Market of the London Stock Exchange, it said it is pursuing a Nigeria-focused growth strategy in oil and gas, as well as developing a power & new energy business to lead Nigeria’s energy transition.