Seplat Energy has threatened to take legal action against any parties involved in disseminating false information in relation to its business with Mobil Nigeria Unlimited.
The threat was contained in a letter written to the Nigeria Exchange Limited under Corporate Announcement, where it denied alleged impropriety in the process of securing ministerial consent to the acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited.
According to a letter dated 10th August 2022 and signed by Emeka Onwuka, Chief Financial Officer, titled: Seplat Energy Plc (“Seplat Energy” or the “Company”) Response to Allegations of Impropriety” which can be found in the Corporate Disclosure section of the websites of NGX, the company states :
“Seplat Energy has become aware of news and social media reports alleging impropriety in the process of securing ministerial consent to the acquisition of Mobil Producing Nigeria Unlimited by Seplat Energy Offshore Limited.
Such reports are wholly untrue and the Company will pursue legal action against any parties involved in disseminating false information related to its business.
This announcement is made pursuant to Rule 17.10 of the Rulebook of the Nigerian Exchange, 2015 (Issuer’s Rule)”
“Inside Information: Some of the information contained within this announcement is considered by Seplat Energy to constitute inside information, as defined under the EU Market Abuse Regulation, EU No.596/2014. By the publication of this Announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.”
“Responsibility for publication: This announcement has been authorised for publication on behalf of Seplat Energy by Emeka Onwuka, Chief Financial Officer, Seplat Energy Plc. Signed:”
Meanwhile, the president, after granting ministerial consent regarding the N1.283 billion sales and purchase deal between ExxonMobil and Seplat Energy, President Muhammadu Buhari rescinded the decision on Wednesday.
The president, who is the de facto Minister of Petroleum Resources, blamed the lack of coordination among the concerned agencies for the confusion, explaining that he had weighed the likely ramifications of the earlier decision.
In throwing his weight behind the regulator’s decline of the $1.283 billion transaction yesterday through a spokesman, Garba Shehu, who was quoted by Premium Times, an online news outlet, Buhari said he decided that the best line of action was to stick with the regulatory commission.
“It has become clear that the various agencies involved in decision had not coordinated well among themselves and having looked at all of the facts with all of the ramifications, the president decided the position of the regulator is to be supported,” Shehu said.
Shehu further confirmed to THISDAY last night that indeed, the President had decided to stick to the law. “They called to confirm and I confirmed it.”
But the president’s earlier July 8 statement was said to have gone against a decision taken three days earlier in favour of the NNPCL, as the NUPRC and the national oil company fought to make the president change his mind on the matter.
On Monday Buhari had overridden the long-drawn attempt by the Nigerian National Petroleum Company Limited (NNPCL) to block the deal, citing the need to attract Foreign Direct Investment (FDI) to the oil and gas sector.
No sooner had the process of acquiring the assets been announced than the state-owned oil firm moved to halt it from proceeding, claiming that it had a pre-emption right.
The Nigerian authorities thereafter put a halt to the proposed sale citing overriding national interest as one of the reasons for rejecting the deal, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), intimating ExxonMobil of the decision.
But in a surprising twist, months later, Buhari said he had consented to the deal , stressing that it would come with massive benefits for the country and the industry in particular, highlighting the need to quickly ramp up production.
If it succeeded, the transaction would have seen 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 or 170 per cent increase in 2P liquids reserves, from 241 MMbbl to 650 MMbbl.
In addition, it was expected to deliver a 14 per cent increase in 2P gas reserves from 1,501 Bscf to 1,712 Bscf, plus significant undeveloped gas potential of 2,910 Bscf (JV: 7,275 Bscf)
Among others, it would also increase by 89 percent, the total 2P reserves from 499 MMboe to 945 MMboe, including offshore fields with dedicated, MPNU-operated export routes offering enhanced security and reliability.
The president had okayed the acquisition in a public statement on Monday by his Media Adviser, Femi Adesina, who stressed that Buhari was: “Considering the extensive benefits of the transaction to the Nigerian energy sector and the larger economy.”
But a few hours after Buhari granted his consent, the NUPRC Chief Executive, Mr Gbenga Komolafe, rejected the decision, explaining that the position of the Petroleum Industry Act (PIA) was clear on the matter. He insisted that its consent to the deal remained declined.
Quoting relevant sections of the law which empowers it to hold such view, Komolafe stated that the status quo (its withdrawal of consent) was still subsisting, maintaining that it was purely a regulatory matter.
“So, the position of the commission as the authority involved in the regulation of the upstream which had earlier been communicated to Mobil, stands. As far as the commission is concerned, nothing has changed. The status quo remains as far as we are concerned,” he maintained.
olusola Bello
