The Nigerian National Petroleum Corporation (NNPC) is reportedly set to stop the sale of ExxonMobil shares worth $1.583 billion to Seplat Energy Plc.
Recall that ExxonMobil had announced that Seplat Energy has agreed to purchase its complete shares in Mobil Producing Nigeria Unlimited (MPNU), subject to regulatory approval.
Also, Seplat Energy Plc on February 25 announced an agreement to acquire the entire share capital of MPNU, a subsidiary of ExxonMobil.
On March 4, the NNPC Group Managing Director, Mele Kyari, in a letter addressed to ExxonMobil said the national oil company has opted to exercise its right of first refusal in the deal as contained in the Joint Operating Agreement (JOA).
Reacting to the development, the Chief Financial Officer of Seplat, Emeka Onwuka, said the proposed deal had not been blocked or terminated by NNPC as widely reported.
According to the Punch, the NNPC’s bid to acquire ExxonMobil’s assets is part of the Corporation’s expansion plan.
It was learned that the state-owned oil firm must have, based on its exercise of the right of first refusal, paid as much as $2 billion for the assets.