Abuja — President Muhammadu Buhari has approved the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.

The president, in a release issued Monday by his Media Adviser, Femi Adesina, acting in his capacity as Minister of Petroleum Resources, and in consonance with the country's drive for Foreign Direct Investment (FDI) in the energy sector, has consented to the acquisition of Exxon Mobil shares in the United States of America by Seplat Energy Offshore Limited.

Exxon Mobil had entered into a landmark Sale and Purchase Agreement with Seplat Energy to acquire the entire share capital of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation, Mobil Development Nigeria Inc and Mobil Exploration Nigeria Inc, both registered in Delaware, USA.

President Buhari gave his ministerial consent to the deal based on the extensive benefits of the transaction to the Nigerian energy sector and the larger economy.

The president, in commitment to investment drive in light of the Petroleum Industry Act, granted consent to the Share Sales Agreement, as requested by the parties to the transaction, and directed that the approval be conveyed to all the parties involved.

Exxon Mobil/Seplat are expected to carry out operatorship of all the oil mining licences in the related shallow water assets towards production optimization to support Nigeria's OPEC quota in the short term, as well as ensure accelerated development and monetization of the gas resources in the assets for the Nigerian economy.

President Buhari also directed that all environmental and abandonment liabilities be adequately mitigated by Exxon Mobil and Seplat.