{"id":97959,"date":"2022-08-10T16:59:17","date_gmt":"2022-08-10T15:59:17","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=97959"},"modified":"2022-08-10T16:59:17","modified_gmt":"2022-08-10T15:59:17","slug":"controversy-rages-as-president-buhari-gives-consent-to-sale-of-exxonmobil-to-seplat-in-disregard-to-court-order","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/news\/controversy-rages-as-president-buhari-gives-consent-to-sale-of-exxonmobil-to-seplat-in-disregard-to-court-order\/","title":{"rendered":"Controversy rages as President Buhari gives consent to sale of ExxonMobil to Seplat in disregard to court order"},"content":{"rendered":"<div id=\"m#msg-f:1740789066499759157\" class=\"mail-message expanded\">\n<div class=\"mail-message-header spacer\" style=\"text-align: justify;\">President Muhammadu Buhari has finally given consent to the sale of Exxon Mobil shares in the United States of America to Seplat Energy Offshore Limited.<\/div>\n<div class=\"mail-message-content collapsible zoom-normal mail-show-images \" style=\"text-align: justify;\">\n<div class=\"clear\">\n<div dir=\"auto\">\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">A statement on Wednesday by\u00a0Special Adviser to the President, (Media and Publicity)\u00a0Femi Adesina states, &#8220;In his capacity as Minister of Petroleum Resources, and in consonance with the country\u2019s drive for Foreign Direct Investment in the energy sector, President Muhammadu Buhari has consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">&#8220;Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">&#8220;Considering the extensive benefits of the transaction to the Nigerian Energy sector and the larger economy, President Buhari has given Ministerial Consent to the deal.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">&#8220;The President, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all the parties involved.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">&#8220;Exxon Mobil\/Seplat are expected to carry out operatorship of all the oil mining licenses in the related shallow water assets towards production optimization to support Nigeria\u2019s OPEC quota in the short term as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">&#8220;President Buhari also directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.&#8221;<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Pointblanknews.com reports that the deal which is worth $1.28 billion has been enmeshed in controversies bothering on bribery allegations.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Pointblanknews.com gathered that a $100 million bribe was shared among top officials to secure the Federal Government\u2019s approval.<\/div>\n<div dir=\"auto\">\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The $100 million, it was gathered, was allegedly given to bribe some top government officials with a view to compromising the process leading to the point where the purported approval was announced on Monday by President Muhammadu Buhari.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Apparently embarrassed by the bribery scandal rocking the government, Buhari was reported to have directed the Department of State Service (DSS) to investigate the matter.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">In February 2022, Seplat Energy Plc. had announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28 billion.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The transaction entails the acquisition of ExxonMobil Nigeria\u2019s entire offshore shallow water business.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">According to the deal, ExxonMobil Nigeria\u2019s shallow water business is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">A pre-emptive right over the assets had been secured by the Nigerian National Petroleum Company Ltd while it has also in July won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy Plc.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">But a federal high court judge in Abuja had granted NNPC an \u201corder of interim injunction\u201d on July 6, 2022, barring Exxon Mobil \u201cfrom completing any divestment\u201d in a unit that ultimately operates four licenses in Nigeria.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Despite the court\u2019s verdict, President Buhari had gone ahesd to approve that the deal should be consummated by Mobil and Seplat.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The Presidency\u2019s announcement of the approval of the deal came as shock to many industry players because the transaction had initially been declined on July 5 this year by the President who doubles as the Minister of Petroleum Resources and assisted by Chief Timpre Sylva as Minister of State.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Industry sources alleged that there had been underground moves by sponsors of the share purchase transaction to get approval for the deal, after it was declined by the government.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The sources also insisted that the approval by the Presidency was not in conformity with the provisions of the Petroleum Industry Act 2022 which gives the sole authority to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">NUPRC had in a statement on August 8, 22 reaffirmed that its decline to the acquisition deal between Seplat Energy Plc. and Exxon Mobil Corporation has not been reversed.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">It stated that the issue at stake is purely a regulatory matter, adding that the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">The statement said following the decline of ministerial approval, the status quo must remain.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe Nigerian Upstream Petroleum Regulatory Commission (NUPRC) affirms that status quo remains in respect of ExxonMobil\/Seplat Energy share acquisition.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe Chief Executive of the NUPRC Engr. Gbenga Komolafe clarified that the Commission in line with the provisions of the Petroleum Industry Act 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cAs it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. As such the Commission further affirms that the status quo remains.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">\u201cThe Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector,\u2019\u2019 said the statement.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">Industry watchers and experts have hailed the decision of NUPRC to stand up to its regulatory function as contained in the PIA.<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\">They lauded NUPRC\u2019s standoff and resistance to political pressure to endorse illegality, pointing out with the defense of its constitutional mandate, Nigeria is now ready to conduct businesses in the oil and gas sector in a transparent manner and in line with international best practices as stipulated in the PIA.<\/div>\n<\/div>\n<div dir=\"auto\"><\/div>\n<div dir=\"auto\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"mail-message-footer spacer collapsible\" style=\"text-align: justify;\"><\/div>\n<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>President Muhammadu Buhari has finally given consent to the sale of Exxon Mobil shares in the United States of America to Seplat Energy Offshore Limited. A statement on Wednesday by\u00a0Special&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":96195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-97959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Controversy rages as President Buhari gives consent to sale of ExxonMobil to Seplat in disregard to court order - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/news\/controversy-rages-as-president-buhari-gives-consent-to-sale-of-exxonmobil-to-seplat-in-disregard-to-court-order\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Controversy rages as President Buhari gives consent to sale of ExxonMobil to Seplat in disregard to court order - Pointblank News\" \/>\n<meta property=\"og:description\" content=\"President Muhammadu Buhari has finally given consent to the sale of Exxon Mobil shares in the United States of America to Seplat Energy Offshore Limited. 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