Seplat Energy Offshore Limited, a wholly owned Nigerian subsidiary of Seplat Energy Plc, announced that it has entered into a Sale and Purchase Agreement to acquire the entire share capital of Mobile Producing Nigeria Unlimited from Exxon Mobil Corporation, Delaware for a purchase price of $1,283 million plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.
The Transaction encompasses the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria and does not include Exxon Mobil’s deep-water assets in Nigeria.
The Transaction will make Seplat of one of the largest independent energy companies on both the Nigerian and London Stock Exchanges as the company is listed on the exchanges.
Based on 2020 pro forma working interest volumes for Seplat Energy and MPNU, the transaction delivers:
- 186% increase in production from 51 kboepd to 146 kboepd
- 170% increase in 2P liquids reserves, from 241 MMbbl to 650 MMbbl
- 14% increase in 2P gas reserves from 1,501 Bscf to 1,712 Bscf, plus significant undeveloped gas potential of 2,910 Bscf (JV: 7,275 Bscf)
- 89% increase in total 2P reserves from 499 MMboe to 945 MMboe1
- Includes offshore fields with dedicated, MPNU-operated export routes offering enhanced security and reliability
This is the first transaction to be announced since the Nigerian Government’s recently ratified Petroleum Industry Act (“PIA”), and supports its key objectives
The MPNU portfolio primarily consists of:
- A 40% operating ownership of four oil mining leases (OMLs 67, 68, 70, 104) and associated infrastructure (NNPC is the 60% partner)
- The Qua Iboe Terminal, one of Nigeria’s largest export facilities
- 51% interest in Bonny River Terminal and Natural Gas Liquids Recovery Plants at EAP and Oso
- It does not include ExxonMobil’s deep-water assets in Nigeria
- MPNU will operate as a standalone subsidiary of Seplat Energy and upon closing and following receipt of requisite regulatory approvals, Seplat Energy will align MPNU with its overall strategic goals and ESG objectives
According to Dr. Bryant (ABC) Orjiako, Chairman of Seplat Energy,
“This is a transformational acquisition for Seplat Energy that strengthens our partnership with the national oil company, the NNPC, and consummates the spirit of the newly enacted PIA. As a significantly larger business, with a stronger resource base and greatly enhanced capabilities, we will be better positioned to provide sustainable energy solutions that drive growth and profitability for the benefit of all our stakeholders, particularly our host communities and the wider Nigerian economy. “
“We fully support the aims of the Federal Government’s “Decade of Gas”, and this acquisition will accelerate our development of Nigeria’s gas resources to help achieve a just transition for our rapidly growing country.”
Roger Brown, CEO of Seplat Energy said,
“This transaction underpins Seplat Energy’s drive to be a leader in the growth of the indigenous independent energy sector in Nigeria. The acquisition is a perfect fit with our strategy to build a sustainable business and deliver energy transition in Nigeria. Our financial strength has enabled us to attract high quality local and international capital providers to fund this transaction without diluting our existing shareholders and reflects our deliberate approach to capital allocation. “
“We are determined to drive our growth through the extensive low-cost and low-risk production opportunities it delivers in the near term, whilst also developing longer-term opportunities to monetise our significant gas resources through domestic and export opportunities. “
“This is a win-win for both companies. Together, we will strengthen our focus on profitability and cash generation to reinvest in Nigeria’s energy development. “
“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I look forward to welcoming them to the Seplat Energy family.”
