Federal Government withheld approval for the deal between Seplat Energy's attempt to acquire Mobil Producing Nigeria Unlimited (MPNU)

For two months now, the indigenous and international oil companies had been awaiting Government approval while Federal Government harden the exit door amid IOCs rushing out of the country 

The industry’s regulator, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), declined to consent to the acquisition which was first reported on February 25, 2022. The deal is meant to improve the revenue generation of Seplat, and allow ExxonMobil exit Nigeria’s oilfields.

Ripples Nigeria had previously reported the elements linked to the government withholding its approvals included NNPC’s possible interest in ExxonMobil’s share in MPNU and demand for decommissioning of the oilfield before sale.

In a statement on Thursday, by Seplat, they confirmed that Mobil Producing Nigeria Unlimited received a letter from NUPRC declining their consent, but made it clear that the deal is still valid and in process.

Seplat Energy confirms that it has received a letter from the Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (“NUPRC”) on the process. The Company has also been notified by the shareholders of MPNU confirming that MPNU received a letter from NUPRC declining their consent.

“Under the terms of the Sale and Purchase Agreement (“SPA”), announced on 25 February 2022, which remains valid and subsisting, the Company will further its engagement with all relevant stakeholders.

“Seplat Energy is confident that the process to obtain all approvals on the acquisition of MPNU’s entire share capital is being followed and will be achieved.” His statement reads