NNPC And ExxonMobil Settle Over $1.2bn Divestment Deal Involving Seplat Energy

The Nigerian National Petroleum Company (NNPC) Limited has finalised a settlement agreement with ExxonMobil, enabling the divestment of ExxonMobil’s entire stake in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Plc. This $1.2 billion deal, initially announced in February 2022, had been delayed by regulatory issues for over two years.

The agreement, announced by NNPC on Thursday, includes MPNU, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc.

Settlement agreement between NNPC Ltd. and Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. signed regarding the proposed divestment of a 100% interest in Mobil Producing Nigeria Unlimited to Seplat Energy Offshore Limited, the NNPC statement read.

This development follows President Bola Tinubu’s directive to resolve the divestment issue that had previously stalled the transaction. Initially, NNPC had shown interest in acquiring the stake itself.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rejected Seplat’s deal in May 2022, and former President Muhammadu Buhari reversed his initial approval in August 2022, citing “overriding national interest.” The recent resolution of this deal marks a significant milestone for Seplat Energy.

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