There seems to be no backing down on efforts by the Nigerian National Petroleum Company Limited (NNPC) to halt the completion of the $1.283 billion sales and purchase deal between SeplatEnergies Plc and Mobil Producing Nigeria Unlimited (MPNU).
It was learnt on Monday that the national oil company has won a court decision temporarily blocking the parties from continuing with the transaction until all the contending issues are resolved.
The Seplat transaction involves the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria and was expected to deliver 186 per cent increase in production from 51,000 bpd to 146,000 bpd.
The assets include the Qua Iboe Terminal, one of Nigeria’s largest export facilities as well as a 51 per cent interest in Bonny River Terminal and Natural Gas Liquids Recovery Plants at EAP and Oso.
But the deal ran into troubled waters when the federal government turned down the application for ministerial consent necessary to seal the agreement, citing overriding national interest as one of the reasons for rejecting it.
A leaked statement from Seplat and separate court records indicated that a judge in the capital, Abuja, granted NNPC an, “order of interim injunction” on July 6 barring Exxon “from completing any divestment” in the unit.
It showed that the state-run company sued Mobil Producing Nigeria Unlimited on July 5, asking the court to either to order that a dispute had occurred between the parties over preemption rights, or to order them to take the matter to arbitration.
But Seplat, which is not party to the lawsuit, said its deal with Exxon was “still valid” and the company “remains confident that the matter would be brought to a proper conclusion in accordance with the law,” Bloomberg stated.
The contentious assets the court is interested in include Oil Mining Lease 68, oil 69, 70 and and Oil Prospecting License 94.
The statement added that the court barred MPNU and Mobil Development Nigeria Plc from disposing of their shares in the joint operating agreement (JOA) between them and the NNPC.
“Seplat Energy PLC recently became aware that, on 5 July 2022, the Nigerian National Petroleum Company Limited (NNPC) commenced an action at the State High Court of the Federal Capital Territory in Abuja, Nigeria (State High Court) in relation to the acquisition of the entire shares of Mobil Producing Nigeria Unlimited (MPNU).
“MPNU, its shareholders (Mobil Development Nigeria, Inc. and Mobil Exploration Nigeria, Inc.), and the Nigerian Upstream Petroleum Regulatory Commission are named as defendants in the suit.
“NNPC has requested the State High Court to declare that a dispute has occurred between itself and MPNU in relation to the interpretation of pre-emption rights under their Joint Operating Agreement (“JOA”) and order NNPC and MPNU to arbitration as required by the JOA.
“On 6 July 2022, the State High Court made an ex parte order of interim injunction restraining the Defendants from completing any divestment in MPNU, including the Share Sale and Purchase Agreement signed with Seplat Energy Offshore Limited (the SPA),” the statement said.
The July 6 order restrains ExxonMobil from selling, trading, allocating transferring, or disposing of their shares in their interests covered by or connected to the JOA pending the determination of the claimant/applicant’s motion.
Marked FCT/HC/BW/CV/173/22 m/203/2022, it was filed on July 5 at the high court of the Federal Capital Territory, in the Abuja division presided over by Justice B. Belgore.
Last week, the Chief Executive of the NNPC, Mallam Mele Kyari, pointedly told heads of private oil companies that like them, the national oil company would henceforth go for the best and juiciest assets in the industry as it completes its transitioning to a fully commercial entity.
“We will be the biggest oil and gas company and therefore there will be no distinction between the NNPC and the rest of the partners (private oil companies) that we have in this business.
“And as you are also acquiring assets, and without mincing words, I am being very frontal, we will acquire the best of assets that is possible in order to build our assets base and also those that we can’t manage for our scale, we will give it to you,” Kyari stated pointedly.
Peter Uzoho in Lagos with agency report
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