Member Info for Temple_of_Doom

"So, there is precedent." Indeed so .... as in:

https://guardian.ng/business-services/seplat-affirms-validityof-exxonmobil-transaction/

"WoodMac noted that since this transaction is a corporate acquisition, the Nigerian National Petroleum Company (NNPC) has no right to pre-empt a deal under the Joint Operating Agreement (JOA), which governs the joint venture (JV)."

So we see.

It makes no sense for a regulator to be able to block business transactions because it has a profitable arm that wants to cherry pick the best business for itself.

It's like putting a Fox in a Chicken pen.

Crazy.

Well according yo the latest hews …. The Exxon approval has been reversed by the President … on the grounds that the left hand doesn’t know what the right hand is doing.

Bizarre.

I dunno SeaTank .... NNPC allegedly put £9 bn into a black hole never to be seen again .... all the more reason to let Seplat take over the assets.

If the regulator has a problem, it is obliged to let Exxonmobile know of its objections.

The only objection seems to be ... "we want to buy" - that is not the function of a regulator.

Someone is playing dirty claiming a $100 million bung was used to get presidential approval.

Reading some more SeaTank … The NNPC wants Exxonmobile assets … has a history of corruption and losing billions to corruption, is a private limited company also responsible for regulation of the sector.

Crazy conflict of interest.

Robizm is quite right that this should have been sorted behind closed doors … but that route was probably tried to no avail.

Having been given Ministerial Consent I would imagine MPNU will be looking to have the injunction lifted so the sale can pass through as planned.

"Tribal politics and money" + Lawyers picking up fees in spotting inconsistencies across text.

Published in March:

"Also, Wood Mackenzie, the leading research and consultancy business for the global energy, power and renewable, resurface, chemicals, metals and mining industry, said because this deal is a corporate acquisition, the Nigerian National Petroleum Company (NNPC) Limited has no rights to pre-empt a deal under the Joint Operating Agreement (JOA), which governs the JV, rather than ministerial consent would be the only hurdle remaining, “although nothing can be taken for granted”."

If Wood Mackenzie are right - The injunction should have been pulled yesterday.

News expected to break on Twitter .... Presdidency Nigeria

.. and:

"A presidency source told Reuters that Buhari would meet his junior oil minister Sylva Timipre on Tuesday over the issue. Timipre is expected to issue a statement after the meeting, the source added."

The legal fight as I read today is between legal terms contained in:

"the Petroleum Industry Act" of 1960s

versus

"a new petroleum law passed last year, the petroleum minister can only grant consent for such an acquisition upon recommendation from the commission. "

A pen pusher versus the president.

;)

Nigeria Guardian:

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

"Considering the extensive benefits of the transaction to the Nigerian energy sector and the larger economy, Buhari, as Minister of Petroleum Resources, approved the deal."

It's the president .....

"There were no secrets from the public domain. "

I'm annoyed google search didn't pick up on the rebuff late last night ... it should of ... I bought some first thing but got as low as 125p.

This deal is going through in all probability .... while one cannot predict the unpredictable.

"What a shambles! I guess I should have known better! "

I disagree .... see post below. Seplat had to overcome both regulatory and Ministerial Consent ... the latter is done.

Regulatory hurdles will be hard to argue for .... government regulator business competing with private companies complaining about competition .. using its privileged position to back its own hand?

Read the small print of the President's letter sent yesterday .... the loss in reputation to Nigeria for backtracking on a signed deal is why the President changed his mind.

Going back to February 2022:

"The Transaction is subject to customary closing conditions for a transaction of this nature, including Ministerial Consent and regulatory approvals from the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Federal Competition and Consumer Protection Commission."

Ministerial consent has now been given - so the final hurdle is indeed the regulatory approvals required.

So the Nigerian Upstream Petroleum Regulatory Commission would be quite right .... nothing from their point of view has changed save the consent given, that is one step closer to home.

...

Agreed … for really poor results in this sector look to Jupiter … II was a canny buy … I moved from AJBell to II saved me a tidy sum.

As inflation bites there will be a short term dip in AUM but folk will be obliged to save more for pensions going forward so picking the winners in the sector as always key.

"Going ‘all in’ now as have a low core average to anchor from."

Hiccup today .... Put yourself in the President's shoes .... You ask the relevant parties to play nicely and one disagrees ...

Reminds me of a head of department of mine that made his millions working for Hughes in the USA ....

Pyramidal structure .... when you look up you see a-holes ..... when you look down, you see smiling faces. If you look down and see an a-hole staring back at you ....

.. they get fired.

Someone will be picking up a P45 in Nigeria I suspect.

"PREMIUM TIMES learned that Mr Buhari had last week declined Seplat’s bid in favour of NNPC, only for a contradictory statement to be released on Monday. Officials said the opposing decisions suggest the president may not be in full control of critical state matters and powerful interests sometimes work through aides to obtain favourable, even if controversial, decisions."

Someone is not in control.

"Absolute joke politicians." Not sure UK can claim to be any different given the past 7 years.

"This is great news !!! I so should have bought more than I did."

Could have should have .... was waiting for 110p with the oil price slide - back in 125-127 this afternoon - the risk one takes.

An extra 95,000 boepd .... goodness .. that is around $3 bn in revenues a year and the rest.

I only have profits in here …. Sold 110 bought back the same shares at 83 just now …

If the money goes it goes.