Success Nwogu 
Seplat Energy Plc, has commended President Bola Ahmed Tinubu for granting consent for it to proceed with the acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (‘MPNU’) reportedly valued at $1.28bn.
In a statement issued on Tuesday, the leading Nigerian energy company listed on both the Nigerian Exchange and the London Stock Exchange, also appreciated the support and diligence of the various ministries and regulators for all their work on the transaction.
The statement read: “Seplat Energy Plc, a leading Nigerian energy company listed on both the Nigerian Exchange and the London Stock Exchange, is delighted to announce that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed that consent has been granted by the Honourable Minister of Petroleum Resources in Nigeria, President Bola Ahmed Tinubu GCFR, to proceed with the acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (‘MPNU’) (“the Transaction”).
“ Seplat Energy sincerely thanks His Excellency, President Bola Ahmed Tinubu GCFR, for granting this approval, and appreciates the support and diligence of the various Ministries and regulators for all the work on this Transaction.
“Further announcements will be made as and when appropriate, in line with regulatory requirements.”
Recalk that the federal government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday officially announced the approval of Seplat Energy’s purchase of Exxon Mobil’s onshore assets valued at $1.28bn.
Chief Executive Officer, NUPRC, Gbenga Komolafe, speaking at the NUPRC’s 3rd anniversary in Abuja said that the ministerial approval had now been secured.
The Seplat/ Exxon Mobil’s $1.28bn deal was announced in February 2022, while President Bola Tinubu on October 1, 2024 said the final approval would be granted within days, the deal having been cleared by the regulatory body.
Under the deal, Seplat Energy will acquire and own 40% of four oil mining leases and associated infrastructure, including the Qua Iboe export terminal, and 51% of Bonny River natural gas liquids recovery plant initially owned by Mobil Producing Nigeria Unlimited.
Komolafe, however, said FG declined to grant approval for Shell’s $2.4 billion divestment of its onshore and shallow water assets to the local consortium, Renaissance.
According to him, the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited could not scale regulatory test.
These assets include an estimated 6.73 billion barrels of crude oil and condensate, along with 56.27 trillion cubic feet of gas.
The Renaissance consortium, includes ND Western Limited, Aradel Holdings Plc, the Petrolin Group, FIRST Exploration and Petroleum Development Company Limited, and the Waltersmith Group.
Shell had announced its plan to sell its Nigerian onshore subsidiary – Shell Petroleum Development Company of Nigeria Limited, to Renaissance for a consideration of $1.3bn, while the buyers would make an additional payment of up to $1.1bn relating to prior receivables at completion, the company stated.
The NUPRC boss that while the government had processed five divestment applications, only four were approved.
He said the federal government was committed to ensuring that all transactions comply with the regulatory standards established under the Petroleum Industry Act (PIA).
According to Komolafe, the approved deals are: Eni’s divestment of Nigerian Agip Oil Company (NAOC) to Oando Plc, and Equinor Nigeria Energy Company Limited’s divestment to Project Odinmin Investments Limited.
Others are the TotalEnergies-Telema Energies deal and ExxonMobil’s sale of Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy.
He said: “Currently, we have processed four of the transactions and four of them have received ministerial consent,” he said.
“The four transactions are the transactions in respect of Equinor–Project Odinmim. That has been recommended by the regulator in line with the provisions of the Petroleum Industry Act and it has received ministerial consent.
“Also, the transaction in respect of Agip to Oando, that has equally been processed in line with the established regulatory pillars and that has equally received ministerial consent and that has been communicated accordingly.
“Also, a transaction in respect to ExxonMobil-Seplat has equally successfully been recommended by the regulator and I am happy to announce that has received ministerial consent. Also, a transaction in respect of 10 percent divestment by TotalEnergies (to Telema Energies) has equally been completed by the regulator and has received ministerial consent.
“All in all, out of the five major divestment transactions that were referred to the commission for processing, the commission for the first time in history ensured that robust regulatory framework was established in line with the PIA.”
He said the process has been institutionalised through regulation, adding that the commission diligently processed all the transactions.
The NUPRC boss also said the FG targets to significantly increase oil production by one million barrels per day over the next 12 to 24 months.
He said the plan is intended to enhance the country’s energy output and contributing to economic growth.
According to him, it also seeks to boost current oil production capacity from 1.6 million to 2.6 million barrels per day by 2026.
According to him, the project represents a collaborative industry-wide initiative, designed to develop solutions that will unlock additional oil production in both the short and medium term. He also called for the support of all stakeholders.
He said, “The implementation of the plan, called the ‘Project One Million Barrels Increase of Oil Per Day Initiative’, is to be launched today by His Excellency.
“The project is an industry collaborative initiative aimed at creating solutions to unlock incremental oil production in the short to medium term, with expanded opportunities for all industry stakeholder groups.
“We see value for all producers, service providers, rig owners, financiers, and crude oil off-takers, among others.
“Our actions here today will be pivotal to production sustainability, energy security, and economic resilience, all in the overall national interest.
“As we look intently to the future, I call on all of us, our partners, investors, and stakeholders to join hands with the government on this journey.”
