Heineken Lokpobiri, the Minister of State for Petroleum Resources, emphasized President Bola Tinubu’s dedication to completing the acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil by Seplat Energy.
The statement was announced on Tuesday during the Facts Behind the Figures Presentation of Seplat Energy to mark a decade of its listing on the Nigerian Exchange.
Mobil Producing Nigeria Unlimited (MPNU) is ExxonMobil’s Nigerian offshore shallow water business holding both gas and oil business reserve.
A pre-purchase agreement worth $1.28bn was signed between Seplat and ExxonMobil in February 2022, and a contingent payment if upto $300m.
However, the deal has not been completed, because the Nigerian National Petroleum Company Limited had won a court decision temporarily blocking Exxon Mobil Corporation from selling assets in Nigeria to Seplat Energy.
A judge in Abuja granted NNPC an “order of interim injunction” on July 6, 2022, barring Exxon “from completing any divestment” in a unit that ultimately operates four licenses in Nigeria.
Lokpobiri reaffirmed, “All the issues you raised about the ExxonMobil transaction, you know I have brought you and NNPCL together and we are on the verge of closing all of those issues. I can assure you that we will close that deal in a very short time. The President is committed to the closure of the deal. We have gone far. We will close it no matter the obstacles. That is fundamental to the opening of new investments in this country.
“Now that the whole world is campaigning against investment in fossil fuel, if we close this transaction and Seplat expands their investments, Bonga North, which is predicated on that resolution, comes on board, and the whole world will know that Nigeria has become a new investment destination and that is the objective of this government. I also want to take this opportunity to call on other companies to emulate Seplat.”
Moreover, Lokpobiri assured that the Federal Government is prepared to support Seplat in advancing its ventures for the mutual benefit of the company and Nigeria.
“On behalf of the Federal Government, I want to state categorically here that we will partner with Seplat to expand their investments not only for the benefit of their shareholders but for Nigeria as a country. If you see numbers in terms of Seplat’s contributions, in royalties, taxes, they are enormous and the least the government can do is support that,” he declared.
Also speaking, Udoma Udo Udoma, the Chairman of the Seplat Board, stressed that the company being listed on both the Nigerian and London Stock Exchanges, the firm was essentially a Nigerian company, committed to the progress of the country.
He noted, “We are the first Nigerian company to be listed on both the premium board of the Nigerian Exchange as well as the main market of the London Stock Exchange. On April 14, 2014, the day of our dual listing, Seplat Energy raised over $500m in a landmark initial public offer.
“We desired to build a company that could stand the test of time and stand shoulder-to-shoulder with other global players from other climes. Nothwithstand our dual listing, we are a Nigerian company committed to contributing to economic prosperity.”
Roger Brown, the Managing Director of Seplat, projecting the future of the company, said, “Nigeria is going through enormous change with the direction of the current government, which is to be the investor destination in the next five to 10 years and Nigeria can achieve it, but it is not going to achieve it unless we balance between government and the private sector.
“Seplat, which is from the private sector, wants to be driving, trailblazing the growth. In our sector, we have seen a massive change that I’m extremely excited about because I know we can work together to deliver that opportunity.
“As the IOCs move to the deep waters, which is where their expertise is, what it does is allow the onshore and shallow water offshore to the dominated by independent companies alongside the government and I know from the IPPG that as a group we can deliver this. What is Seplat going to do? What we want to do is complete this Exxonmobil acquisition, which will bring four shallow water blocks and massive gas and oil potential. That is going to be part of our 5–10-year plans.”
Dr Umaru Kwairanga, the Chairman of the Nigerian Exchange Group, stressed the firm for it achievements over the past decade.
“Today, we commemorate the illustrious listing on the exchange. Today, we gather to celebrate a decade marked by remarkable growth and unwavering dedication within Nigeria’s energy sector. Seplat’s journey reflects resilience, innovation and a commitment to excellence, making them a beacon of corporate governance and operational expertise.”
Temi Popoola, the Managing Director of the NGX Group, also described the dual listing of Seplat on the NGX and London Stock Exchange as a landmark moment for the capital market.
“When you look at the market today, it is hard to divorce whatever you like about the Nigerian capital market from the Seplat story. That deal of 10 years ago, we haven’t seen anything like it since that time, which is good and not so good. If you were to look at our market and find landmarks, the last real major landmark you will find in this market is this transaction from 10 years ago, which we are celebrating today. The market is grateful for that. Secondly, I think Seplat has brought a high level of governance to our market,” Popoola expounded.
As of the most recent trading session, Seplat closed at N3,370 on the Nigerian Exchange.
