Summary:
The Nigerian National Petroleum Company (NNPC) Limited has filed a motion in the High Court of the Federal Capital Territory, Abuja, to discontinue its ongoing legal action against several subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The suit challenges ExxonMobil’s $1.28 billion asset divestment to Seplat Energy.
Details:
- Motion Filing Date: June 11, 2024
- Objective: Discontinue the legal action and finalize a settlement agreement involving the divestment of 100% interest in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited.
- Legal Representation: Afe Babalola & Co. for NNPC
- Request to Court: Grant leave for discontinuance and strike out the suit without costs, with provision to relist if the settlement process fails.
Background:
- Settlement Agreement: Announced two weeks ago by NNPC, following President Bola Tinubu’s approval of the deal.
- Initial Agreement: Seplat announced the acquisition of ExxonMobil’s 40% stake in MPNU in February 2022.
- Regulatory Hurdles: NUPRC declined approval in May 2022, citing "overriding national interest." NNPC secured a court injunction in July 2022, preventing ExxonMobil from selling its Nigerian assets. Former President Muhammadu Buhari reversed his initial authorization for the acquisition in August 2022.
Current Status:
- The court will consider NNPC’s motion to discontinue the suit, which, if granted, would allow all parties to focus on finalizing the settlement and divestment transaction.
Implications:
- For NNPC and ExxonMobil: The discontinuation of the lawsuit and finalization of the settlement agreement may resolve the long-standing dispute.
- For Seplat Energy: Successfully acquiring ExxonMobil’s stake in MPNU would mark a significant expansion in its operations and assets.
Additional Information:
- The divestment deal has been closely watched due to its potential impact on the Nigerian oil and gas industry and its regulatory landscape.
- The broader context includes NNPC’s recent efforts to streamline operations and focus on strategic partnerships and asset management.
Next Steps:
- The court's decision on the motion will be crucial in determining the next phase of the divestment process.
- Stakeholders and industry watchers are keenly observing the developments, given the deal's significance.
The Nigerian National Petroleum Company (NNPC) Limited has filed a motion in the High Court of the Federal Capital Territory, Abuja, to discontinue its ongoing legal action against several subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The suit challenges ExxonMobil’s $1.28 billion asset divestment to Seplat Energy.
Details:
- Motion Filing Date: June 11, 2024
- Objective: Discontinue the legal action and finalize a settlement agreement involving the divestment of 100% interest in Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited.
- Legal Representation: Afe Babalola & Co. for NNPC
- Request to Court: Grant leave for discontinuance and strike out the suit without costs, with provision to relist if the settlement process fails.
Background:
- Settlement Agreement: Announced two weeks ago by NNPC, following President Bola Tinubu’s approval of the deal.
- Initial Agreement: Seplat announced the acquisition of ExxonMobil’s 40% stake in MPNU in February 2022.
- Regulatory Hurdles: NUPRC declined approval in May 2022, citing "overriding national interest." NNPC secured a court injunction in July 2022, preventing ExxonMobil from selling its Nigerian assets. Former President Muhammadu Buhari reversed his initial authorization for the acquisition in August 2022.
Current Status:
- The court will consider NNPC’s motion to discontinue the suit, which, if granted, would allow all parties to focus on finalizing the settlement and divestment transaction.
Implications:
- For NNPC and ExxonMobil: The discontinuation of the lawsuit and finalization of the settlement agreement may resolve the long-standing dispute.
- For Seplat Energy: Successfully acquiring ExxonMobil’s stake in MPNU would mark a significant expansion in its operations and assets.
Additional Information:
- The divestment deal has been closely watched due to its potential impact on the Nigerian oil and gas industry and its regulatory landscape.
- The broader context includes NNPC’s recent efforts to streamline operations and focus on strategic partnerships and asset management.
Next Steps:
- The court's decision on the motion will be crucial in determining the next phase of the divestment process.
- Stakeholders and industry watchers are keenly observing the developments, given the deal's significance.