Seplat Energy Completes ExxonMobil Assets Acquisition At $800m

Seplat Energy has completed its acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $800 million, significantly down from the initial $1.28 billion agreement.

The deal, finalised on Thursday, is expected to double Seplat’s crude oil production to approximately 120,000 barrels per day and enhance its reserves by 86 per cent to 887 million barrels of oil equivalent.
This transformative acquisition positions Seplat as Nigeria’s leading independent energy company and is fully funded through existing cash and debt facilities.

The transaction is transformative for Seplat Energy, more than doubling production and positioning the company to drive growth and profitability, while contributing significantly to Nigeria’s future prosperity.
MPNU adds substantial reserves and production to Seplat Energy; 409 MMboe 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30th June, 2024 and 6M 2024 average daily production of 71.4 kboepd.

“Seplat Energy sincerely thanks President Bola Ahmed Tinubu, for supporting this transaction, and appreciates the support and diligence of the various Ministries and regulators for all the work to reach a successful conclusion,” said chairman of Seplat Energy, Udoma Udo Udoma.

“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.

“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the government, regulators, communities and our staff,” he further said.

As an operator, Seplat’s immediate tasks are to ensure smooth transition of MPNU staff into Seplat, and on the operations, to swiftly target numerous opportunities that exist to organically grow production and further enhance the value of the assets for all stakeholders.

Detailed guidance for the enlarged Group in 2025 will be provided with Seplat’s full year 2024 results, expected in late February 2025.

Also speaking, chief executive officer of Seplat Energy, Roger Brown, said: “Today we have achieved a major milestone in the history of Seplat Energy and I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.

MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.

“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders. MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders.”

In February 2022, Seplat Energy announced its intention to acquire Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $1.28 billion.

The deal faced significant delays due to regulatory hurdles and legal challenges from the Nigerian National Petroleum Company (NNPC), which sought the right of first refusal on the assets.

After securing necessary approvals from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and a settlement with NNPC, the acquisition was finalised on Thursday.