Seplat Energy Completes $800 Million Acquisition Of Mobil Producing Nigeria Unlimited.
Seplat Energy has successfully acquired Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil for $800 million, marking a significant milestone in the company’s growth. The finalised deal, announced on Thursday, reflects a notable reduction from the initial $1.28 billion agreement and is expected to transform Seplat Energy into Nigeria’s leading independent energy company.
The acquisition is projected to double Seplat’s crude oil production to approximately 120,000 barrels per day and increase its reserves by 86 per cent, bringing total reserves to 887 million barrels of oil equivalent. The transaction, funded entirely through Seplat’s existing cash and debt facilities, also positions the company to enhance growth and profitability while contributing substantially to Nigeria’s energy sector.
Strategic Benefits of the Acquisition
The addition of MPNU significantly boosts Seplat Energy’s portfolio, adding 409 million barrels of oil equivalent (MMboe) in 2P reserves and 670 MMboe in 2P + 2C reserves and resources as of June 2024. MPNU also contributed an average daily production of 71.4 thousand barrels of oil equivalent per day (kboepd) in the first half of 2024.
Seplat Energy Chairman, Udoma Udo Udoma, expressed gratitude to President Bola Ahmed Tinubu, relevant ministries, and regulators for their support in facilitating the transaction. “This acquisition is transformative for Seplat Energy, more than doubling our production and positioning the company to drive growth and profitability while significantly contributing to Nigeria’s future prosperity,” he said.
He also welcomed MPNU employees to Seplat, emphasising the company’s mission to deliver value to all stakeholders while maintaining strong relationships with the government, regulators, communities, and staff.
Focus on Smooth Transition and Future Growth
Seplat’s immediate priority is to ensure a seamless integration of MPNU’s employees into its operations and to explore opportunities for organic production growth. Detailed guidance on the expanded group’s strategy will be provided alongside Seplat’s 2024 full-year results, expected in February 2025.
Chief Executive Officer Roger Brown highlighted the significance of the acquisition, describing it as a major milestone for Seplat Energy. “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,” he said.
Brown also reiterated the company’s commitment to increasing oil and gas production, reducing costs and emissions, and delivering value to stakeholders while building a sustainable business that provides affordable, accessible, and reliable energy for Nigeria.
Overcoming Regulatory Challenges
The acquisition process, initially announced in February 2022, faced delays due to regulatory and legal challenges, including opposition from the Nigerian National Petroleum Company (NNPC), which sought the right of first refusal on MPNU’s assets. However, after securing approvals from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and reaching a settlement with NNPC, the deal was finalised.
With this acquisition, Seplat Energy solidifies its position as a key player in Nigeria’s energy sector, poised for sustainable growth and significant contributions to the nation’s energy needs.
