Seplat Energy Plc is set to finalize its acquisition of ExxonMobil’s onshore oil and gas assets in Nigeria on Thursday, December 12, 2024, following the signing of an Assets Sale and Purchase Agreement (SPA) with Mobil Producing Nigeria Unlimited (MPNU).
The deal, valued at $800 million, marks a transformative milestone for Seplat Energy, more than doubling the company’s production to around 120,000 barrels of oil equivalent per day.
This acquisition is poised to drive Seplat’s growth and significantly enhance its profitability, contributing substantially to the Nigerian economy. The assets, located in one of the world’s most prolific hydrocarbon basins, are considered of proven quality, reinforcing Seplat’s position as a leading player in Nigeria’s energy sector.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) granted approval for the sale last month, with Seplat Energy also receiving the necessary green light from the Financial Conduct Authority (FCA) in the United Kingdom. The company disclosed these developments in its official prospectus, a comprehensive document detailing its business and financial standing.
As part of the deal, Seplat will also take on deferred liabilities totaling $257.5 million, which are tied to decommissioning, abandonment, and joint venture (JV) expenses. These costs are scheduled for settlement in December 2025 and will be partially offset by JV cash calls. The after-tax financial impact of these costs on MPNU is expected to range between $25 million and $35 million. In addition, Seplat will incur approximately $23 million in other transaction-related costs, while $64 million in regulatory consent fees will be adjusted into the final cash consideration due at closing.
The acquisition will see Seplat Energy take control of several key assets, including:
- 40% operated interest in OMLs 67, 68, 70, and 104.
- 40% operated interest in the Qua Iboe export terminal and the Yoho Floating Storage and Offloading unit (FSO).
- 51% operated interest in the Bonny River Terminal (BRT).
- A 9.6% interest in the NGL recovery plant.
- A participating interest in the Aneman-Kpono field.
This acquisition is a pivotal moment in Seplat Energy’s growth strategy, positioning the company to play a more prominent role in the global energy landscape.
