By Elizabeth Chukwuma
With barely one week after President Muhammadu Buhari, in his capacity as the minister of Petroleum Resources, gave his consent regarding the $1.283 billion, deal between the North American country, of the Unite states, US, ExxonMobil and Seplat Energy plc, an idigenous Oil producing company, that was said to have been struck on of February , 2022, there appears to be a twist to the ministerial approval.
One account has it that the Katsina state born Nigerian President h has made withdrawing his ministerial approval for the deal, which industry stakeholdrs had blamed on the position taken by the Nigerian Upstrean Regulatory Commission on the mattater since the day the deal was struck. The deal ought to have given Seplat Energy effective takeover of the US, ExxonMobil entire share capital in Mobil Producing Nigerian Unlimited, MPNU, another US, oil Producing Company, with its operational base in Ibeno, Akwa Ibom state, Nigeria, if it had been consummated.
Indeed, this would have scaled up the indigenous oil oil production level to 95,000. Gbenga Komolafe, an Engineer and Chief Executive Officer, CEO, NURC, a subsidiary of Nigerian National Petroleum Corporation, NNPC, now baptized, Nigerian Petroleum Company Limited with the signing into Law of the Petroleum Indusstry Bill, PIC, into Law by the Katsina state born Nigerian Ppresident was. He said to have to have opened up the controversy on the ministerial approval to the Exxon Mobil Seplat deal.
Komolafe, the NURC, CEO, was said to have communicated to Nigerian President that only the Commission has the powers to decide on which oil company takes over the entire share capital of ExxonMobil, which is has signified its intention to exit Nigeria. The two contending parties battling for the us ExxonMobil total share capital in MPNU, are the Nigerian oil giant, Nigerian National Petroleum Cooperation, NNPC, and Seplat Energy, an indigenous oil Company, insisting that the statusquo remains.
Recall that NNPC, had dragged ExxonMobil and Seplat Energy to a Federal High Court in Abuja, the Federal Capital Territory FCT, to prevent the 1.283 deal from being consummated by the two parties. It was said to have won the case in the first instance on July 6, 2022, as ‘’it restrained ExxonMobil, from completing any divestment , in oil mining lease 68, oil mining lease 69, oil mining lease 70 and its oil operating license’’. The Court was said to have also’’ restrained MPNU and Mobil Nigerian Development, pc, from disposing its share capital in the joint venture agreement’’.
The NURC, had rejected outright the ministerial decision to grant consent to Seplat Energy to takeover ExxonMobil share capital on MPNU, on ground that ‘’the issue at stake falls within the powers of the Commission’’ . It was not surprsisng why Buhari was reluctant to approve the US based Exxon Mobil, Seplat $1.83 billion in May, 2022.
The NURC, had cited ‘‘overriding national interest, , failure to follow the due process and inappropriate application’’ as major reasons for rejecting the two parties deal, noting ‘’it would deliver higher taxes , increased production and generate more oil revenue to Nigeria if the Sales and Purchase of the US, Exxon Mobil total share capital in MPNU, is properly disposed off without trying to cut corners to shortchange Nigeria.
.. Informed sources said the Commission communicated its position to Richard Lang, the Chairman and Managing Director, MPNU and ABC Orjiakor, a business mogul and immediate past Caiman of Seplat Energy plc that deal will not hold as the Nigerian President has declined his consent of the $1.3 billion transactions. That was how far , he could go. The president may have surprised the NURC, officials, when he approved the US, Exxon Mobil deal with Splat Energy on Monday, August 7, 2022. This may have forced the NURC, officials to go back to the drawing the board to perfect plans to see that the Nigerian President withdraw the approval to ensure that the status quo remains.
On Wednesday, August 9, 2022, the news broke out that the President has made a U-turn , on the US-Exxon Mobil/Seplat deal on the ground that the various agencies that ought ‘’to be involved in taking the decision as regards to the $1.3 billion deal had not Coordinated well among themselves’’.
Informed sources said he had looked at all ‘’the facts with all the ramifications and thus, decided to cue to the position of NURC that the status quo remains based on its outlined reasons. Officials of Seplat Energy which appear to be in the dark over the Buhari alleged reversal of its earlier consent to the deal in its Corporate filing on Wdnesday, August 9, 2022, said that’’ it had followed all the due process in the acquisition of the ExxonMobil assets’’.
Officials of the indigenous oil Company have made Nigerians to unerstand that the deal with the US, ExxonMobil, of acquisition of its entire share capital in MPNU, still stands, as ‘’it had not received any official notification from the Federal ministry of Petroleum Resources or the Presidency, reversing it.
According to informed ources, the company is now seeking clarification from NURC, and other relevant Authorities to know where it has gone contrary to he laid down condition for the Sale and Purchase of he ExxonMobil entire share capital in MPNU and the news making the rounds that Buhari, who had initially given his consent to the deal had withdrawn his ministerial approval for the deal.
In spite of the fact, that officials of the indigenous oil producing company had said that it had not been communicated by the office of the President, who also oversees the ministry of Petroleum Resources, the company may have become convinced that that ‘’the proposed acquisition of the entire share capital of Exxon Mobil, in MPNU, has been withdrawn going by the turn of events in the country energy sector between Monday, August 7, 2022 and Wednesday, August 9, 20222022.
Emeka Onwuka, the Company, Chief Financial Officer, CFO, had confirmed that it is no longer a rumour that the President had made a U-turn on the $2.83 billion deal with the US, ExxonMobil to take over its entire share capital in MPNU. Hear him: The President as withdrawn his assent to the company’s proposed acquisition of the entire share capital of US, ExxonMobil, in MPNU, in his capacity as the minister of Petroleum Resources’’.
Nthwistanding, the Cancellation of the ExxonMobil and Seplat $1.283 deal, Seplat officials, have said that they will continue ‘’to work with relevant parties to achieve a successful outcome to the proposed acquisition’’. heNigerian Nigerian National Petroleum Corporation, NNPC, now baptize Nigerian Petroleum Company, with the signing of the Petroleum Industry Bill , PIB, BY was said to have to have opened up the controversy on the said ministerial approval to the Exxon Mobil Seplat deal.
Komolafe, the NURC, CEO, was said to have communicated to Nigerian President that only the Commission has the powers to decide on which oil company takes over the entire share capital of ExxonMobil, which is has signified its intention to exit Nigeria. The two contending parties battling for the us ExxonMobil total share capital in MPNU, are the Nigerian oil giant, Nigerian National Petroleum Cooperation, NNPC, and Seplat Energy, an indigenous oil Company, insisting that the statusquo remains.
Recall that NNPC, had dragged ExxonMobil and Seplat Energy to a Federal High Court in Abuja, the Federal Capital Territory FCT, to prevent the 1.283 deal from being consummated by the two parties. It was said to have won the case in the first instance on July 6, 2022, as ‘’it restrained ExxonMobil, from completing any divestment , in oil mining lease 68, oil mining lease 69, oil mining lease 70 and its oil operating license’’. The Court was said to have also’’ restrained MPNU and Mobil Nigerian Development, pc, from disposing its share capital in the joint venture agreement’’.
The NURC, had rejected outright the ministerial decision to grant consent to Seplat Energy to takeover ExxonMobil share capital on MPNU, on ground that ‘’the issue at stake falls within the powers of the Commission’’ . It was not surprsisng why Buhari was reluctant to approve the US based Exxon Mobil, Seplat $1.83 billion in May, 2022.
The NURC, had cited ‘‘overriding national interest, , failure to follow the due process and inappropriate application’’ as major reasons for rejecting the two parties deal, noting ‘’it would deliver higher taxes , increased production and generate more oil revenue to Nigeria if the Sales and Purchase of the US, Exxon Mobil total share capital in MPNU, is properly disposed off without trying to cut corners to shortchange Nigeria.
.. Informed sources said the Commission communicated its position to Richard Lang, the Chairman and Managing Director, MPNU and ABC Orjiakor,a business mogul and immediate past Caiman of Seplat Energy plc that deal will not hold as the Nigerian President has declined his consent of the $1.3 billion transactions. That was how far, he could go. The president may have surprised the NURC, officials, when he approved the US, Exxon Mobil deal with Splat Energy on Monday, August 7, 2022. This may have forced the NURC, officials to go back to the drawing the board to perfect plans to see that the Nigerian President withdraw the approval to ensure that the status quo remains.
On Wednesday, August 9, 2022, the news broke out that the President has made a U-turn , on the US-Exxon Mobil/Seplat deal on the ground that the various agencies that ought ‘’to be involved in taking the decision as regards to the $1.3 billion deal had not Coordinated well among themselves’’.
Informed sources said he had looked at all ‘’the facts with all the ramifications and thus, decided to cue to the position of NURC that the status quo remains based on its outlined reasons. Officials of Seplat Energy which appear to be in the dark over the Buhari alleged reversal of its earlier consent to the deal in its Corporate filing on Wdnesday, August 9, 2022, said that’’ it had followed all the due process in the acquisition of the ExxonMobil assets’’.
Officials of the indigenous oil Company have made Nigerians to understand that the deal with the US, ExxonMobil, of acquisition of its entire share capital in MPNU, still stands, as ‘’it had not received any official notification from the Federal ministry of Petroleum Resources or the Presidency, reversing it.
According to informed sources, the company is now seeking clarification from NURC, and other relevant Authorities to know where it has gone contrary to he laid down condition for the Sale and Purchase of he ExxonMobil entire share capital in MPNU and the news making the rounds that Buhari, who had initially given his consent to the deal had withdrawn his ministerial approval for the deal.
In spite of the fact, that officials of the indigenous oil producing company had said that it had not been communicated by the office of the President, who also oversees the ministry of Petroleum Resources, the company may have become convinced that that ‘’the proposed acquisition of the entire share capital of Exxon Mobil, in MPNU, has been withdrawn going by the turn of events in the country energy sector between Monday, August 7, 2022 and Wednesday, August 9, 2022.
Emeka Onwuka, the Company, Chief Financial Officer, CFO, had confirmed that it is no longer a rumour that the President had made a U-turn on the $2.83 billion deal with the US, ExxonMobil to take over its entire share capital in MPNU. Hear him: The President as withdrawn his assent to the company’s proposed acquisition of the entire share capital of US, ExxonMobil, in MPNU, in his capacity as the minister of Petroleum Resources’’.
Nthwistanding, the Cancellation of the ExxonMobil and Seplat $1.283 deal, Seplat officials, have said that they will continue ‘’to work with relevant parties to achieve a successful outcome to the proposed acquisition’’.
