Seplat Energy Plc, an international oil company listed on both the Nigerian Exchange Limited and the London Stock Exchange, has completed the acquisition of Mobil Producing Nigeria Unlimited MPNU from ExxonMobil Corporation.
This was disclosed in a statement issued on Thursday and signed by the oil company’s Chief Executive Officer Roger Brown.
The acquisition will more than double Seplat’s production capacity, boosting its output to approximately 120,000 barrels of oil equivalent per day.
Recall that the federal government, in October 2024, approved the sale of ExxonMobil’s onshore assets in Nigeria to Seplat Energy.
Both parties had reached an agreement on the $800 billion deal in February 2022 but the deal had been under regulatory review since then.
The company assured that employees of the MPNU will be absorbed into the workforce of Seplat Plc, emphasizing that it will maintain positive impacts.
Udoma Udo Udoma, the Chairman of Seplat Energy thanked President Bola Tinubu and the relevant ministries for supporting the acquisition
He said: “Seplat Energy sincerely thanks His Excellency, President Bola Ahmed Tinubu GCFR, 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.
“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.”
The CEO Roger Brown noted that the company is committed to increasing its oil and gas output while meeting international standards and environmental protection.
“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,” he said.
What you should know
- Seplat Energy Plc is Nigeria’s leading indigenous energy company. It is listed on the Premium Board of the Nigerian Exchange Limited (NGX: SEPLAT) and the Main Market of the London Stock Exchange (LSE: SEPL).
- The deal had been agreed since February 2022 but was delayed by regulatory hurdles.
- The deal was originally valued at $1.283 billion, including up to $300 million in contingent payments spread over five years, along with standard adjustments, but was later adjusted to $800 million.
- Major oil companies, including Mobil Nigeria, Eni and Equinor have sold their onshore assets to focus on offshore operations. This may be due to economic challenges and such issues as oil theft and pipeline vandalism.