Seplat Clarifies NNPC’s Pre-Emption Right On ExxonMobil Assets Acquisition

March 08, (THEWILL) – Seplat Energy says it has not cancelled its Exxonmobil deal.

The company made the clarification in a press release on Monday.

“Seplat Energy wishes to clarify that the Sale and Purchase Agreement (SPA), earlier announced February 25, 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 ExxonMobil Corporation registered in Delaware (ExxonMobil)”, the press release read.

“The company 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).”

A pre-emption right or first option to buy is a contractual right to acquire certain property coming into existence newly, before it can be offered to any other person or entity.

Earlier in March, it was reported that while Seplat Energy Plc, a major energy company in Nigeria, has agreed to buy the shallow-water assets of ExxonMobil in the country, the crucial green light from the Nigerian National Petroleum Company Limited (NNPC) could come at a heavy cost.

Mele Kyari, the group managing director of NNPC, to this effect, said International Oil Companies (IOCs) divesting from Nigeria’s upstream sector must address issues of abandonment and decommissioning of oil assets.

“We will not end the 2012 situation in Nigeria; it will be done in a manner that brings value to Nigeria”, said Kyari at a panel session during the Nigerian International Energy Summit in Abuja on Tuesday.

However, the release by the energy company stated that the MPNU is not a party to the SPA and continues to hold its interests, rights, and obligations under the NNPC/MPNU JOA.

BusinessDay reports that the Energy firm also confirms that no event of termination has occurred, and the SPA remains valid and subsisting amid some reports that the SPA between ExxonMobil and Seplat Energy has been terminated.

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

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Sam Diala, THEWILL

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Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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