Why Buhari overrode NNPC’s Objection to do what he did – Femi Adesina
About three months after he declined consent, President Muhammadu Buhari. On Monday, made a U-Turn as he consented to the acquisition of Exxon Mobil’s $1.6 billion assets by Seplat Energy Offshore Limited.
He did that in his capacity as Minister of Petroleum Resources, and in consonance with the country’s drive for Foreign Direct Investment in the energy sector,
Platforms Africa has, in an exclusive story on May 17, 2022, reported that the President refused to approve the deal as the Nigerian National Petroleum Company Limited (NNPC), a Joinr Ventures (JV) partner with the ExxonMobil declared plan to exercise its right of first refusal.
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A statement signed by Femi Adesina, Special Adviser to the President on Media and Publicity, however, stated: “Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc, and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.
“Considering the extensive benefits of the transaction to the Nigerian Energy sector and the larger economy, President Buhari has given Ministerial Consent to the deal.
“The President, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all the parties involved. “
“Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licenses in the related shallow water assets towards production optimization to support Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.
“President Buhari also directed that Exxon Mobil and Seplat adequately mitigate all environmental and abandonment liabilities.”
