MOBIL NIGERIA SOLD IN A $1.2 BILLION DEAL

MOBIL NIGERIA SOLD IN A $1.2 BILLION DEAL

Adedayo Osho, Abuja Bureau Chief

In a $1.2 billion deal, Nigerian oil and gas company, Seplat Energy has reached an agreement with American multinational firm, ExxonMobil, to acquire the company’s subsidiary, Mobil Producing Nigeria Unlimited, and its business operation.

The deal sees Seplat Energy acquire 40% stake in four oil mining licenses comprising over 90 shallow-water and onshore platforms, including 300 producing wells. Seplat Energy will also acquire one of the largest export facilities in Nigeria, the Qua Iboe terminal and natural gas recovery plants at EAP and Oslo.

Mobil'sacquisitionwill create one of Nigeria’s largest independent energy firms on the country's stock exchange and increase Seplat Energy’s oil and gas reserves by 170% to 650 MMbbl and by 14% to 1,712 Bscf, respectively. Seplat Energy’s production capacity by will also increase by 186%.

Mobil Producing Nigeria Unlimited would only be concerned with its deepwater projects.

Seplat-Mobil agreement is the first deal to be announced in Nigeria after the enactment of the Petroleum Industry Act in August 2021.

Liam Mallon, president, ExxonMobil Upstream Oil and Gas, stated: "This sale will allow us to prioritize competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations."

"The acquisition is a perfect fit with our strategy to build a sustainable business and deliver energy transition in Nigeria. Our financial strength has enabled us to attract high quality local and international capital providers to fund this transaction without diluting our existing shareholders and reflects our deliberate approach to capital allocation," added Roger Brown, CEO of Seplat Energy.