The Nigerian National Petroleum Company Ltd has opted to exercise its right of first refusal as contained in the Jo--t Operating Agreement (JOA) of the JV + details of NNPC’s position on the planned sale of ExxonMobil shares to SEPLAT Energy Plc.
https://dailytrust.com/nnpc-cancels-exxonmobils-1-6bn-assets-sale-to-seplat
CERAWEEK Exxon seeks to unblock stalled sale in 'challenging' Nigeria - top executive
By Sabrina Valle
https://www.reuters.com/business/energy/ceraweek-exxon-seeks-unblock-stalled-sale-challenging-nigeria-top-executive-2023-03-06/
HOUSTON, March 6(Reuters) - Exxon Mobil Corp (XOM.N) hopes to get Nigerian government approval to allow the stalled sale of its shallow water oil production operations in the West African country, a top Exxon executive told Reuters.
The largest U.S. oil company will keep its deep-water assets in Nigeria despite a change in the government's leadership, Exxon Global Upstream President Liam Mallon said ahead of the CERAweek energy conference by S&PGlobal in Houston starting Monday.
@8mph+1fAXlVcn Hopefully most , and ideally all those out on the circuit will be pulled back as most are utterly useless
What will be the percentage of Nigerian employee going to Seplat?
Next step is Government Regulatory approval
Does PSC require govt approval. If this is a sale of MPN and a change of control in MPN, do underlying PSC require govt approval?
Actually, the Right of First Refusal doesn't apply in this situation. The agreement covering Right of First Refusal is between MPN and NNPC. ExxonMobil is selling MPN, not MPN is selling some assets and keeping some, in which case it would apply. Seplat is wholly buying MPN. It's a done deal.
This is normal. Same happened to EM when tried to buy into Ghana.
Right of first refusal is a contract right that partners give each other in a jo--t operating agreement (very common contractual right). XOM gets paid the same. In past contracts XOM exercised this right. In many cases it protects a seller from a low ball offer.
@qpd+1fAXlVcn The Lagos building (so-called “Mobil House” was a downstream asset (Mobil Oil Nigeria), even if it became over time mostly occupied by upstream employees.
This building was sold a few years back along with the other MON assets (service stations, Apapa terminal,...), and leased back by MPN from the new owner.
This is an indication that Seplat did not pay off the right people.
Not a cancelation. It's right of first refusal. According to terms, NNPC can buy instead if they match Seplat offer. If they can't get funding within alloted time then it reverts back to Seplat. The only kicker are the politics between NNPC and the regulatory approval (also government agency). They can tie it up until NNPC can get its act together Ho hum whatever
I wonder if the sale includes the EM Lagos building? As an EM engineer, I rotated (28/28) to Nigeria for about 6 years working onshore and offshore.
Lagos is a mess, I never felt safe there, even offshore (i. e., pirates). If you’re working onshore it’s a great place to lose weight. Ha!