FG Committed to Conclusion of Seplat-ExxonMobil Deal – Lokpobiri
Heineken Lokpobiri, the Minister of State for Petroleum Resources, has said that the federal government is on the verge of approving the acquisition of Mobil Producing Nigeria Unlimited (MPNU) assets by Seplat Energy.
He said on Tuesday that President Bola Tinubu is committed to the closure of the acquisition at the Facts Behind the Figures Presentation of Seplat Energy to mark a decade of its listing on the Nigerian Exchange.
Seplat agreed on February 25, 2022, to buy ExxonMobil’s 40 percent share in MPNU for $1.28 billion. They aimed to finalise the deal by the second half of 2022.
However, Nigeria National Petroleum Company (NNPC) Limited, owning 60 percent of MPNU, also wanted to purchase ExxonMobil’s share.
On May 19, 2022, the Nigerian Upstream Petroleum Regulatory Company (NUPRC) rejected the proposed purchase, citing “overriding national interest.”
Lokpobiri said: “All the issues you raised about the ExxonMobil transaction, you know I have brought you and NNPCL together and we are on the verge of closing all of those issues. I can assure you that we will close that deal in a very short time. The President is committed to the closure of the deal. We have gone far. We will close it no matter the obstacles. That is fundamental to the opening of new investments in this country.
“Now that the whole world is campaigning against investment in fossil fuel, if we close this transaction and Seplat expands their investments, Bonga North, which is predicated on that resolution, comes on board, and the whole world will know that Nigeria has become a new investment destination and that is the objective of this government. I also want to take this opportunity to call on other companies to emulate Seplat.”
In addition, the minister said that the Federal Government would be willing to support the energy firm for the benefit of the country.
“On behalf of the Federal Government, I want to state categorically here that we will partner with Seplat to expand their investments not only for the benefit of their shareholders but for Nigeria as a country. If you see numbers in terms of Seplat’s contributions, in royalties, taxes, they are enormous and the least the government can do is support that,” he said.
