President Muhammadu Buhari has approved the acquisition of ExxonMobil Corporation assets by Seplat Energy Plc.
This follows an earlier refusal by the Nigerian National Petroleum Company (NNPC) Limited and other regulatory authorities to consent to the transaction.
Seplat had entered into an agreement to acquire the entire share capital of MPNU from Exxon Mobil in February.
In a statement on Monday, Femi Adesina, presidential spokesperson, said Buhari made the approval considering the ample benefits of the divestment to the country’s oil sector.
The statement said the approval was in exercise of the president’s power as petroleum minister and in consonance with the country’s drive for foreign direct investment in the energy sector.
“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 statement indicated.
“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,” it added.