President Bola Tinubu says the ExxonMobil and Seplat divestment transactions will get ministerial approval in a few days.
He disclosed this in his Independence broadcast on Tuesday. He said the divestment process has been approved by the Nigerian Upstream Petroleum Regulatory Commission in line with the Petroleum Industry Act.
Tinubu disclosed that the divestment process was done in the same manner as other qualified divestments approved in the sector.
Tinubu said his administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of the nation’s regulatory processes.
This principle, he said, guides the divestment transactions in the upstream petroleum sector, where he promised his commitment to changing the fortune positively.
“As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.
“The move will create vibrancy and increase oil and gas production, positively impacting our economy,” the President noted.
The divestment deal between Seplat and ExxonMobil has been stalled for over two years.
On July 12, 2022, The PUNCH reported that Nigerian National Petroleum Company Limited blocked ExxonMobil’s asset sale to Seplat.
The report stated that NNPC won a court decision temporarily blocking ExxonMobil Corporation from selling assets in Nigeria to Seplat Energy Plc.
Seplat had agreed to acquire the United States oil major’s subsidiary for at least $1.28bn in February.
The NNPC had wished to block the transaction and to take over the permits itself and this led to litigations.
A settlement agreement was reached this year as the NNPC lifted a court injunction so that the sale of the asset to Seplat could be concluded.
This came as the NNPC was advised to sell its stake in the ExxonMobil asset instead of being in a joint venture with Seplat Energy.
An oil and gas expert, Prof. Wumi Iledare, advised the company while reacting to an update by President Tinubu that the $1.28bn ExxonMobil asset sale to Seplat would get ministerial approval soon.
According to Iledare, some people do not like the idea of divestment, but it is part of the upstream business.
He said the fact that a publicly traded company in Nigeria is buying the ExxonMobil asset is a good thing.
He advised the NNPC to sell its share in the ExxonMobil joint venture to the Dangote oil refinery to have more stake in the refinery.
Iledare also opined that the President should not have delved into the matter.
“He should have just given the commission the power to announce such a thing. The moment he’s announcing it himself, it becomes a political game. However, I think it’s a good thing if they can conclude it. I wish NNPC will also sell their own share that is with that asset instead of going into a joint venture with Seplat,” he stated.