After over two years of administrative and bureaucratic delays, the Nigerian National Petroleum Company Limited (NNPC Ltd) has finally signed a settlement agreement with Mobil Producing Nigeria Unlimited, Mobil Development Nigeria Inc., and Mobil Exploration Nigeria Inc. resolving the long-standing compliance issues under Section 14 of the 2019 Joint Operating Agreement (JOA) contained in the Petroleum Industry Act (PIA).
The settlement was reached between the management of the two organisations on Thursday, thereby granting consent to the sale of ExxonMobil’s 40 percent stake in MPNU assets to Seplat Energy Plc for $1.3 billion.
The agreement is expected to pave the way for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to close the deal by granting the parties involved the Subject-to-Clearance Consent within 30 days.
The $1.3 billion deal between ExxonMobil and Seplat Energy involved the acquisition of a 40 per cent stake in MPNU, which includes four oil mining licenses, more than 90 shallow-water and onshore platforms, and 300 producing wells. However, the transaction has been delayed due to disputes between the parties and a court ruling that temporarily prevented ExxonMobil from selling its assets to Seplat Energy.
