The Nigerian National Petroleum Corporation (NNPC) is set to meet the management of Exxon Mobil Corporation on March 17, 2022, over an agreement it had with Seplat Energy Plc to acquire the entire share capital of Mobil Producing Nigeria Unlimited, Delaware for $1.28 billion.
This was disclosed by a source in the NNPC, who prefered anonymity, in a chat with Nairametrics on Friday.
According to the source, the state-owned oil giant has opted to exercise its Right of First Refusal (RFR) on the sale of the assets. The RFR is reportedly contained in the Joint Operating Agreement (JOA) of the Joint Venture (JV), which represents NNPC’s position on the planned sale of the shares to Seplat Energy Plc.
What our source is saying about the deal
He said, “NNPC has the right to exercise its Right of First Refusal. We will provide details about our stand shortly.”
Meanwhile, efforts to get the reaction of Seplat Energy Plc were abortive, as the company kept mum over the development.
What you should know about NNPC’s move
The NNPC, according to a media report that was circulated across the social media on Thrusday, had notified Mobil Producing Nigeria Unlimited of its intention to exercise a Right of Pre-emption on ExxonMobil’s planned sale of its entire asset in Nigeria’s onshore and shallow waters.
The state-owned oil firm, which is the major shareholder in the Joint Ventures with ExxonMobil, may have exercised its right of first refusal on the assets as part of a new era which will focus solely on building the long term profitability of the NNPC Ltd.
In a letter signed by Group Managing Director, Mele Kyari, and addressed to ExxonMobil, the NNPC reiterated its resolve to take over the ExxonMobil’s share of the assets.
While announcing the deal earlier, ExxonMobil had said that the deals were subject to approval and the new position of the NNPC, meaning that the whole process of sale and purchase agreement between ExxonMobil and Seplat Energy may has be discontinued.
It stated, “We are aware that you reached an agreement to divest from onshore and shallow waters JVs, clearly we are interested.”
Back story
Nairametrics has reported when Seplat Energy Plc announced an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for $1.28 billion.
This was disclosed in a notice published by the Nigerian Exchange Limited (NGX) on February 24, 2022. The transaction is reminiscent of the $1.5 billion ConocoPhillips Nigerian operation by Oando in 2014.
The transaction entails the acquisition of ExxonMobil Nigeria’s entire offshore shallow water business. According to the notice, ExxonMobil Nigeria’s shallow water business is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd in 2020 (92% liquids).
