Seplat Energy Plc, Nigerian energy company listed on both the Nigerian Exchange and the London Stock Exchange has announced 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, to proceed with the acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (MPNU).
In a statement by Chief Executive Office, Roger Brown Seplat Energy sincerely thanks the President Bola Ahmed Tinubu, for granting this approval, and appreciates the support and diligence of the various Ministries and regulators for all the work on this Transaction.
The company noted that further announcements will be made as and when appropriate, in line with regulatory requirements.
The Nigerian National Petroleum Company Limited (NNPC) has recently filed a motion to discontinue its legal action against various subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This motion, submitted on June 11, 2024, in the High Court of the Federal Capital Territory, Abuja, is part of a wider effort to finalize a settlement agreement concerning the divestment of Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited.
This development follows Seplat Energy Plc’s February 2022 announcement of its intention to acquire 100 per cent of MPNU’s shares from ExxonMobil Corporation for $1.28bn.
The transaction had previously triggered a legal dispute, with NNPC asserting its preferential rights under a Joint Operating Agreement with ExxonMobil.
In its motion, NNPC’s legal counsel requested the court to grant permission for discontinuance and to strike out the case, allowing for the possibility of re-listing if the settlement process is not successful.
Key provisions of the Settlement Agreement, signed by NNPC CEO Mele Kyari and MPNU Managing Director Shane Harris, include:
MPNU shareholders will allow Seplat to provide the Share Sale and Purchase Agreement to NNPC to complete their transaction.
NNPC will withdraw all interim orders and the substantive lawsuit against MPNU and other defendants.
The parties will jointly discontinue arbitration proceedings once the transaction is completed.
MPNU shareholders and NNPC will align their respective positions to finalize their transactions with Seplat.
NNPC’s legal team emphasized that the request for discontinuance aligns with Order 24 of the High Court of the Federal Capital Territory Civil Procedure Rules 2018 and is critical for the settlement’s completion. The court’s ruling on the motion is expected to play a key role in resolving the long-standing dispute, allowing the parties to proceed with finalizing the divestment.
The initial lawsuit, filed on July 5, 2022, led to the referral of the case to arbitration on August 3, 2022. However, recent developments indicate that the parties have opted for an out-of-court settlement, formalized through the execution of a Settlement Agreement that requires NNPC to withdraw the case to move forward with the settlement.
