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 Akwa Ibom takes situation with Exxon sale to Seplat
June 6, 2022

Akwa Ibom takes situation with Exxon sale to Seplat

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The Akwa Ibom authorities has objected to ExxonMobil’s sale plans to Seplat Vitality and filed a authorized case to halt the transaction.

State lawyer normal Uko Udom briefed journalists on the weekend on Akwa Ibom’s objections.

The state has filed to stop the sale, This Day reported. “That’s as a result of there’s a pending litigation between Mobil [Producing Nigeria, MPN] and the federal government of Akwa Ibom State.”

The official mentioned MPN had didn’t notify Akwa Ibom of the sale. “The try and promote its asset, a few of which can embody property belonging to Akwa Ibom State was dealt with in a way that’s reasonably upsetting.”

The 2 sides have had relationship till just lately, Udom mentioned. The “surreptitious method” by which Exxon is finishing up the sale “could be very distressing and to not be anticipated of a accountable company citizen”.

Authorized points

The unique courtroom case stems from some land proper points. MPN is suing Akwa Ibom over the revocation of licences.

“The sell-out can’t be allowed to proceed as a result of when you’ve gotten events contesting possession of an property, all these issues could be saved in abeyance,” Udom mentioned.

“Any try by both of the events to deplete the asset or promote or eliminate them could be resisted by the courtroom. It’s contemptuous really,” This Day reported the official as saying.

Seplat introduced the take care of Exxon in late February. The London and Nigeria-listed unbiased has mentioned it expects the deal to shut within the second half of this yr.

The corporate mentioned it will pay $1.28 billion, plus as much as $300 million in numerous contingent funds. The property produced 95,000 barrels of oil equal per day in 2020.

Earlier this month, there was hypothesis that Nigerian Nationwide Petroleum Corp. (NNPC) was pre-empting the sale of MPN to Seplat.

The latter issued a press release saying the sale was for ExxonMobil’s subsidiaries. MPN, Seplat mentioned, was not a celebration to the sale and the settlement was shifting forward.

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