Seplat's planned takeover of ExxonMobil assets is in limbo as court blocks bid
Seplat Energy says state-owned Nigerian National Petroleum Company Limited (NNPC) has won a court order blocking its bid to buy all of the oil assets of Mobil Producing Nigeria Unlimited (MPNU), a local unit of oil major ExxonMobil.
“MPNU, its shareholders (Mobil Development Nigeria, Inc. and Mobil Exploration Nigeria, Inc.) and the Nigerian Upstream Petroleum Regulatory Commission are named as defendants in the lawsuit,” the largest oil and gas company disclosed. gas industry in terms of market value. in a press release seen Tuesday by PREMIUM TIMES.
The July 6 court ruling is interim and prohibits MPNU and the defendants from proceeding with any disposal of assets in MPNU, not excluding the share sale and purchase agreement it entered into with Seplat in February.
NNPC had asked the court, the State High Court of the Federal Capital Territory, to declare that a dispute had arisen between the state oil company and the UNPM over "the interpretation of pre-emptive rights in under their Joint Operating Agreement ("JOA") and order NNPC and MPNU to submit to arbitration as required by the JOA."
ExxonMobilSeplat Energy does not said neither itself nor Seplat Energy Offshore Limited is a party to the lawsuit, insisting that the share purchase agreement remains valid.
The asset purchase will allow Seplat Energy to increase production by 95,000 barrels of oil per day from the assets of a joint venture that ExxonMobil manages with NNPC.
ALSO READ: Seplat Energy appoints Omiyi to replace Orjiakor as ChairmanNNPC has asserted a right of first refusal over the assets.
ExxonMobil's decision to exit Africa's largest crude oil producer reflects the growing trend of international oil companies to cease their stakes in offshore operations in the country and invest elsewhere.
Oil drillers find operations close to host communities increasingly worrisome and believe retaining offshore fields is the way forward.
In April, TotalEnergies SE announced its intention to sell its 10% minority stake in a joint venture with a company holding twenty onshore and shallow water licenses in Nigeria.
Shell, owner of the permits, was approached by four local companies, including Seplat, for a 30% stake in the company.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
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Seplat Energy says state-owned Nigerian National Petroleum Company Limited (NNPC) has won a court order blocking its bid to buy all of the oil assets of Mobil Producing Nigeria Unlimited (MPNU), a local unit of oil major ExxonMobil.
“MPNU, its shareholders (Mobil Development Nigeria, Inc. and Mobil Exploration Nigeria, Inc.) and the Nigerian Upstream Petroleum Regulatory Commission are named as defendants in the lawsuit,” the largest oil and gas company disclosed. gas industry in terms of market value. in a press release seen Tuesday by PREMIUM TIMES.
The July 6 court ruling is interim and prohibits MPNU and the defendants from proceeding with any disposal of assets in MPNU, not excluding the share sale and purchase agreement it entered into with Seplat in February.
NNPC had asked the court, the State High Court of the Federal Capital Territory, to declare that a dispute had arisen between the state oil company and the UNPM over "the interpretation of pre-emptive rights in under their Joint Operating Agreement ("JOA") and order NNPC and MPNU to submit to arbitration as required by the JOA."
ExxonMobilSeplat Energy does not said neither itself nor Seplat Energy Offshore Limited is a party to the lawsuit, insisting that the share purchase agreement remains valid.
The asset purchase will allow Seplat Energy to increase production by 95,000 barrels of oil per day from the assets of a joint venture that ExxonMobil manages with NNPC.
ALSO READ: Seplat Energy appoints Omiyi to replace Orjiakor as ChairmanNNPC has asserted a right of first refusal over the assets.
ExxonMobil's decision to exit Africa's largest crude oil producer reflects the growing trend of international oil companies to cease their stakes in offshore operations in the country and invest elsewhere.
Oil drillers find operations close to host communities increasingly worrisome and believe retaining offshore fields is the way forward.
In April, TotalEnergies SE announced its intention to sell its 10% minority stake in a joint venture with a company holding twenty onshore and shallow water licenses in Nigeria.
Shell, owner of the permits, was approached by four local companies, including Seplat, for a 30% stake in the company.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
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