Seplat Energy Plc has successfully concluded the $1.28 billion acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil, marking a major milestone after securing regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission.
This landmark acquisition, which began in 2022, was initially delayed after the Nigerian National Petroleum Company Ltd challenged the sale, asserting its right of first refusal over the joint venture asset.
The process gathered steam when President Bola Tinubu, as Minister of Petroleum, gave final clearance for the divestment.
Seplat Energy sees the merger as transformative.
The business stated that the acquisition would greatly increase production capacity, positioning Seplat for growth and profitability.
The company also underscored the deal’s potential to contribute positively to Nigeria’s economic future.
Chairman of Seplat, Udoma Udo Udoma, expressed gratitude towards President Tinubu and the NUPRC for their support, saying, “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.”
Seplat’s CEO, Roger Brown, celebrated the achievement, acknowledging the dedication of the Seplat team in completing the deal.
“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.”
He added, “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, maximizing 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.”
According to Seplat, the acquisition will increase reserves and production by 409 million barrels of oil equivalent (MMboe) in 2P reserves and 670 MMboe in combined 2P + 2C reserves and resources by June 30, 2024. In the first half of 2024, daily output averaged 71.4 thousand barrels of oil equivalent per day (kboepd).
This transaction is expected to transform Nigeria’s energy landscape by increasing Seplat Energy’s position as a major independent energy firm while also helping the country’s goal of a more robust and sustainable energy sector.
