Reversing an earlier decision, President Muhammadu Buhari now permits Seplat Energy to acquire Exxon Mobil shares in the United States of America.
Malam Garba Shehu, Senior Special Assistant to the President on Media and Publicity, confirmed this to journalists.
Shehu claimed that the President had made the decision to support the regulatory body, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which had on Tuesday insisted on its rejection to give its approval to the acquisition of $1.3 billion worth of ExxonMobil/Seplat Energy shares.
President Buhari now wants the NUPRC position to be endorsed, the presidential spokesman said, adding that the confusion developed because “different agencies participating in (the) decision had not organized well among themselves.”
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Shehu had previously stated to a news outlet online that “it has become clear that the various agencies involved in decision-making had not coordinated well among themselves and having looked at all of the facts with all of the ramifications, the president concluded the position of the regulator is to be supported.”
According to sources, President Buhari gave his approval to the agreement in which Seplat will buy a 40% stake in ExxonMobil’s oil assets near Akwa Ibom State, according to a statement released by the Presidency on Monday.
The Petroleum Industry Act (PIA) 2021 was noted in the announcement as a motivator for FDI and an increase in oil output from the properties.
However, the NUPRC noted in a statement released shortly after that the Commission, in accordance with the PIA 2021 rules, is the only regulator in dealing with such issues in the Nigerian upstream sector.
