Buhari withdraws consent over $1.3bn oil deal

 President Muhammadu Buhari, yesterday, reversed his earlier consent, authorising the acquisition of ExxonMobil Corporation assets by Seplat Energy Plc.

Seplat Energy had earlier agreed to acquire the entire share capital of MPNU at the cost of $1.3 billion plus up to $300 million contingent consideration.

But the Nigerian National Petroleum Company Limited (NNPC) had disagreed, arguing that as a partner, it should have been granted the right of first refusal in purchasing the assets.

However, taking side with the NNPC Limited and the regulator, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, yesterday, Garba Shehu, presidential spokesperson, said the president has decided to support the position of the NUPRC in the deal.

Earlier, the NUPRC had objected to offering the assets to Seplat Energy Plc.

In a statement the Commission had stated: “Responding to media enquiries on latest development about the transaction, the Chief Executive of the NUPRC Gbenga Komolafe clarified that the Commission in line with the provisions of the Petroleum Industry Act 2021 is the sole regulator in dealing with such matters in the Nigerian upstream sector.

“As it were, the issue at stake is purely a regulatory matter and the Commission had earlier communicated the decline of Ministerial assent to ExxonMobil in this regard. The Commission is committed to ensuring predictable and conducive regulatory environment at all times in the Nigerian upstream sector.