President Muhammadu Buhari has approved the acquisition of Exxon Mobil shares by Seplat Energy Offshore Limited.
Buhari’s approval was contained in a statement issued on Monday by presidential aide Femi Adesina.
“In his capacity as Minister of Petroleum Resources, and in consonance with the country’s 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,” the statement read.
“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.”
According to Adesina, Buhari considered the extensive benefits of the transaction to the country’s energy sector and the economy in giving consent.
“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,” the statement added.
“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’s 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.”
The Nigerian leader equally mandated that environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.