By Emmanuel Anthony Ifeanyi
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the decision to decline approval of the acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) by Seplat Energy remained, as President Muhammadu Buhari who doubles as Minister of Petroleum Resources had no power under the Petroleum Industry Act (PIA) to authorise such deal.
Engr Gbenga Komolafe, the Chief Executive of the Commission reacting to the report of the President’s assent to the deal on Monday explained that the NUPRC, being the Nigerian Upstream Regulator under the PIA “is fully vested with the powers to deal with such issues and the Commission had earlier communicated its position to ExxonMobil.”
President Muhammadu Buhari had on Monday authorised the acquisition of the entire share capital of MPNU by Seplat Energy Offshore Limited months after the transaction was stalled as the Nigerian National Petroleum Corporation Limited asserted it had right of first refusal on the deal as MPNU’s joint venture partner.
A tweet by the Presidency on Monday, titled ‘President Buhari consents to the acquisition of Exxon Mobil shares by Seplat Energy Offshore Ltd,’ announced the consent. According to the Presidency, Buhari authorised the transaction as Minister of Petroleum to attract foreign direct investment.
“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”, the Presidency explained
However, Komolafe insisted President Buhari lacked the power under the PIA to grant such approval as it was pure a regulatory matter. “It’s purely a regulatory issue. There hasn’t been a change and the status quo remain and the Commission operates purely in line with the provisions of the PIA,” he asserted.
