The acquisition is key to actualising the most ambitious move ever by Seplat, which is listed in both London and Lagos.
The deal, which has ground to a halt for nearly two years, is expected to expand Seplat’s production by as much as 186 per cent.
“We have very good relationships with the regulator and that is why it takes time and the NNPC is a partner to us and we want to respect the partnership,” Reuters quoted CEO Roger Brown as saying in an interview Wednesday.
“Now we are starting to get to that crux point to try and resolve the issue,” he added.
Seplat opened talks in 2021 to buy Mobil Producing Nigeria Unlimited (MPNU), the local offshore shallow-water operation of Houston-based
ExxonMobil for $1.3 billion. A contingent consideration of $300 million was also agreed at the time.
Owning the assets also entitles Seplat to run Qua Iboe Terminal, the export point of one of Nigeria’s top oil grades, produced from the nearby oilfields that ExxonMobil jointly operates with NNPC Limited.
The deal has been stalled after NNPC Limited, which owns 60 per cent of the fields, initiated a legal move against MPNU and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), saying pre-emption rights under the joint venture give it the exclusive privilege to discuss the acquisition with ExxonMobil first before other suitors are considered.
“We are very optimistic that parties to the transaction will go back, look at the position of the regulator and come back by abiding by the provisions of Nigerian laws and the right thing will be done,” Reuters quoted Gbenga Komolafe, the NUPRC chief, as saying in an interview on the sidelines of Africa Oil Week in Cape Town.
Seplat has extended the share sale and purchase agreement to keep the deal alive until the legal battle is resolved and regulatory approvals are in the bag, its half-year earnings report stated.
