NUPRC has rejected President Muhammadu Buhari’s approval of Seplat Energy’s acquisition of Exxon Mobil Corporation’s shares, stating that the status quo continues.
Due to the “overriding national interest,” the NUPRC had rejected the transaction in May.
President Muhammadu Buhari, in his role as petroleum minister, did sanction the acquisition transaction on Monday.
NUPRC CEO Gbenga Komolafe, in a statement released on Monday, stated that the commission was still dealing with regulatory concerns in the upstream sector.
And as a result, it reiterated that it would not agree to the proposed Seplat Energy’s Acquisition of Exxon Mobil.
ExxonMobil/Seplat Energy share acquisition status quo is “affirmed” by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), according to the announcement.
After media enquired about the most recent developments in the contract, Komolafe made it clear that the “commission in compliance with provisions of the Petroleum Industry Act 2021 is the sole regulator in handling such situations in the Nigerian upstream sector.”
Since the problem at hand is strictly a regulatory one, the commission has informed ExxonMobil that ministerial approval has been declined. This is further proof that things stay as they are,” the commission concluded.
According to the commission, “the Nigerian upstream industry must always have a predictable and accommodating regulatory environment.”
First post-PIA purchase agreement, Seplat Energy announced that it would acquire ExxonMobil’s Mobil Producing Oil assets for $1.3 billion.
A court order preventing Exxon Mobil from selling its Nigerian assets was announced by Seplat Energy to investors in July. The NNPC had halted the sale.