Seplat Energy Plc has announced that its acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil will be completed on December 12, 2024, with a final consideration of $800 million.
This acquisition follows approval from the Nigerian government and the Financial Conduct Authority (FCA) in the United Kingdom (UK), with Seplat publishing its acquisition prospectus on Thursday.
The acquisition is a significant milestone for Seplat Energy, more than doubling its production to around 120,000 barrels of oil equivalent per day (boepd). This growth presents Seplat with a unique opportunity to expand its profitability and contribute more significantly to Nigeria’s economy. The acquired assets are located in one of the world’s leading hydrocarbon basins.
The $800 million purchase includes $672 million payable to ExxonMobil at closing, with an initial deposit of $128 million paid in 2022. An additional $257.5 million will be deferred until December 2025 to cover decommissioning and joint venture costs. Seplat has confirmed that the deal will be fully funded by existing cash and debt facilities, with no new equity issuance required.
The transaction increases Seplat’s proven and probable (2P) reserves by 86% to 887 million barrels of oil equivalent (MMboe), boosts production by 148% to 119,800 boepd, and raises revenue by 245% to $1.456 billion. Adjusted EBITDA is expected to grow by 199% to $800 million.
The enlarged Seplat Energy will own a diverse portfolio of assets, including 11 oil and gas blocks in Nigeria, 48 producing fields, five gas processing facilities, and three export terminals. The company also expects significant growth potential from the commercialisation of undeveloped gas resources.
The acquisition adds key assets such as 40% operated interests in oil mining leases (OML) 67, 68, 70, and 104, as well as interests in the Qua Iboe export terminal and the Bonny River Terminal’s NGL recovery plant. Approximately 1,000 staff and 500 contractors will transition to Seplat as part of the deal.
Seplat also noted that the deal, initially valued at $1.283 billion when announced in February 2022, includes potential contingent payments up to $300 million, based on future performance. To date, $43 million has been paid in contingent payments for 2022 and 2023, with further payments possible for the years 2024 to 2026.
Seplat’s shares are expected to be readmitted to the UK FCA official list on Tuesday.
