By Prince Okafor

Nigeria’s indigenous Energy Company, Seplat Energy, yesterday, debunked report of alleged termination of Sale and Purchase Agreement, SPA, agreement it entered with ExxonMobil.

This is coming against the background of reports that the Nigerian National Petroleum Company Limited, NNPC, has exercised a right of pre-emption under the NNPC/Mobil Producing Nigeria Unlimited, MPNU, Joint Operating Agreement, JOA.

Vanguard had reported that the SPA to acquire the entire share capital of MPNU, stood at $1.283 billion, plus up to $300 million group consideration.

It was also gathered that NNPC had opted to exercise its Right of First Refusal (RFR) on the sale of the assets. The RFR is reportedly contained in the JOA of the Joint Venture (JV), which represents NNPC’s position on the planned sale of the shares to Seplat Energy Plc.

However, a statement signed by the Seplat’s Chief Financial Officer, Mr. Emeka Onwuka, noted that the company wishes to clarify that the SPA, earlier announced on the 25th February 2022, deals with the acquisition of the entire share capital of MPNU, Mobil Development Nigeria Inc and Mobil Exploration Nigeria Inc, being entities of Exxon Mobil Corporation registered in Delaware (“ExxonMobil”).

“MPNU is not a party to the SPA and continues to hold its interests, rights, and obligations under the NNPC/MPNU JOA. There are also some reports that the SPA between ExxonMobil and Seplat Energy has been terminated.

“Seplat Energy confirms that no event of termination has occurred, and the SPA remains valid and subsisting. Seplat Energy is a compliant company and will continue to follow the laws of the Federal Republic of Nigeria.

“This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule),” the statement added.

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