NNPC blocks Exxon Mobil’s asset sale to Seplat

 Exxon Mobil's asset sale to Seplat is prohibited by NNPC.

NNPC GMD, Mele Kyari

The sale of Exxon Mobil Corporation's Nigerian assets to Seplat Energy Plc has been temporarily halted by a court ruling secured by THE Nigerian National Petroleum Company Limited.

According to Blomberg on Monday, a judge in Abuja gave NNPC a "order of temporary injunction" on July 6, 2022, prohibiting Exxon "from completing any divestiture" in a unit that ultimately has four licenses in Nigeria.

Seplat, a producer with headquarters in Lagos, has committed to purchasing the subsidiary of the American oil firm for at least $1.28 billion in February.

According to the allegation, NNPC wanted to stop the deal and seize control of the permits.

According to Bloomberg, Mobil Producing Nigeria Unlimited was sued by NNPC on July 5, 2022. According to a statement from Seplat, NNPC asked the Federal High Court to either declare that the parties had a preemption rights dispute or to order them to submit it to arbitration.

Without being a party to the lawsuit, Seplat said that its agreement with Exxon was "still legal" and that it "remains convinced that the matter will be brought to a proper end in accordance with the law."

Bloomberg said that an Exxon spokesperson declined to comment, while a NNPC spokesperson did not return calls or texts.

With the deal, Seplat would be able to increase its daily production of shallow-water assets from Exxon's joint venture with NNPC by around 95,000 barrels of oil equivalent.

International oil corporations with operations in Nigeria have been selling significant portions of their portfolio to local players for more than ten years, a trend that has recently picked up speed.

Shell Plc was also compelled to halt its intentions to sell all of its remaining onshore permits in Nigeria by an injunction from a Nigerian court.