Seplat signs deal to acquire Nigerian unit of ExxonMobil

Seplat Energy Offshore Limited has entered into an agreement to acquire the entire share capital of the Nigerian unit of Exxon Mobil Corporation – Mobil Producing Nigeria Unlimited (MPNU). The former’s Chief Financial Officer, Emeka Onwuka, who announced this in a statement on Friday, however, said the completion of the transaction was subject to ministerial consent and other required regulatory approvals.

According to him, the company – the Nigerian subsidiary of Seplat Energy Plc, entered into a sale and purchase agreement for a purchase price of $1,283 million-plus up to $300 million contingent consideration, subject to the 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, which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd (W.I.) in 2020 (92% liquids),” Onwuka said.

On the impact of the transaction, he explained that it would create one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, and bolster Seplat Energy’s ability to drive increased growth, profitability, and overall stakeholder prosperity.