Nigeria's Regulator Rejects Buhari's Approval of Seplat's Purchase of ExxonMobil's Asset

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Nigeria's Regulator Rejects Buhari's Approval of Seplat's Purchase of ExxonMobil's Asset

President Muhammadu Buhari's approval of Seplat Energy’s takeover of the entire share capital of Mobil Producing Nigeria Unlimited (Exxon Mobil) has been rejected.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rejected the presidential approval.

Recall in a statement on Monday released by the presidential spokesman, Femi Adesina said the President authorized the takeover, exercising his power as the Minister of Petroleum Resources.

The presidential spokesman maintained that Buhari consented to the acquisition to attract foreign direct investment to the country.

Adesina said that Buhari also directed that Exxon Mobil and Seplat mitigate all environmental and abandonment liabilities.

Reacting to the approval, NUPRC, in a statement on Monday signed by its Chief Executive, Gbenga Komolafe, said the status quo remains in respect of the ExxonMobil/Seplat Energy share acquisition.

Komolafe said the matter was a regulatory one and nothing had changed after it had earlier notified ExxonMobil the transaction had been declined.

He said the Commission in line with the provisions of the Petroleum Industry Act 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.

“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) affirms that status quo remains in respect of ExxonMobil/Seplat Energy share acquisition.

“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. As such the Commission further affirms that the status quo remains,” Komolafe stated.