Buhari reconsiders decision on EXXON Mobil shares acquisition
President Muhammadu Buhari has withdrawn his consent to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.
The President had given the approval in his capacity as Minister of Petroleum Resources.
A statement issued last week by Femi Adesina, Special Adviser to the President (Media and Publicity) explained that the approval was in consonance with the country’s drive for Foreign Direct Investment in the energy sector.
However, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had rejected the Minister’s move on the ground that it is a matter for the regulatory body who had previously informed Seplat that the deal could not be sealed.
The President has now agreed with NUPRC.
According to the Senior Special Assistant to the President (Media and Publicity), the confusion over the matter arose because the relevant agencies had not coordinated properly over the decision.
The presidential aide was quoted by the online newspaper, Premium Times as saying: “It has become clear that the various agencies involved in decision had not coordinated well among themselves and having looked at all of the facts with all of the ramifications, the president decided the position of the regulator is to be supported.”
In consenting to the share acquisition earlier, a statement issued by Adesina had recalled that Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.
