Seplat Energy Plc is on the brink of completing an acquisition of ExxonMobil's Nigerian assets for $800 million, a move set to significantly bolster its crude oil production capacity. The transaction, which has been described as transformative, will see Seplat's output double to approximately 120,000 barrels per day.
The Sale and Purchase Agreement (SPA) with Mobil Producing Nigeria Unlimited (MPNU) is scheduled to close officially on December 12, 2024. This follows an initial agreement made in February 2022, originally valued at $1.28 billion. The deal has since been adjusted to reflect a final consideration of $800 million, taking into account various financial adjustments.
In a statement, Seplat Energy highlighted the strategic importance of this acquisition, noting that it "provides the company with a significant opportunity to further drive its growth and profitability, whilst contributing significantly to the Nigerian economy." The assets acquired are located in one of the world's leading hydrocarbon basins, underscoring their proven quality.
The acquisition has received necessary approvals from both the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Financial Conduct Authority (FCA) in the United Kingdom. Seplat, which is listed on both the Nigerian Exchange and the London Stock Exchange, emphasized that the transaction is fully funded through existing cash and debt facilities, with no new equity issuance required.
The deal includes a 40% operated interest in several Oil Mining Leases (OMLs) and various export and terminal interests. Specifically, Seplat will gain stakes in OML 67, 68, 70, and 104, as well as interests in the Qua Iboe export terminal and the Yoho Floating Storage and Offloading (FSO) unit.
Roger Brown, CEO of Seplat Energy, remarked on the significance of the acquisition, stating, "This transaction marks a pivotal moment for Seplat Energy, positioning us as Nigeria’s leading independent energy company."
The completion of this acquisition is expected to enhance Seplat's production capabilities and contribute to the broader Nigerian economy, aligning with the company's strategic growth ambitions.
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