Home » Energy magnate Bryant Orjiako’s Seplat splashes $1.58 billion to acquire ExxonMobil’s Nigerian operations

Energy magnate Bryant Orjiako’s Seplat splashes $1.58 billion to acquire ExxonMobil’s Nigerian operations

by Omokolade Ajayi

Seplat Energy Plc, Nigeria’s largest energy business, has entered into a final agreement to purchase the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) in a deal valued at $1.58 billion, including contingent payment.

The deal, which represents the first transaction disclosed since the Nigerian government adopted the Petroleum Industry Act, will see Seplat take over the operations of MPNU from ExxonMobil Corporation, one of the world’s largest publicly traded international oil and gas companies.

According to the sale and purchase agreement, Seplat will acquire the entire share capital of MPNU for $1.28 billion in cash, plus up to $300 million in contingent consideration subject to lockbox, working capital and other adjustments at closing, relative to the effective date.

The planned $1.58-billion agreement includes the acquisition of ExxonMobil’s entire offshore shallow water business in Nigeria, which is a well-established, high-quality operation capable of producing 95,000 barrels of oil per day.

The deal, which is subject to ministerial approval and other required regulatory approvals, will create one of the largest independent energy companies on both the Nigerian and London stock exchanges, and will strengthen Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity, according to the management.

Bryant Orjiako, chairman of Seplat Energy, said the proposed purchase is a game changer for Seplat Energy since it strengthens the business’s current collaboration with the Nigerian National Petroleum Corporation (NNPC).

“This is a transformative transaction for Seplat Energy that deepens our collaboration with the national oil firm, the NNPC, and embodies the spirit of the recently adopted PIA,” he said. “As a significantly larger business, we will be better positioned to provide sustainable energy solutions that drive growth and profitability for the benefit of all our stakeholders, particularly our host communities and the wider Nigerian economy.”

“This transaction underlines Seplat Energy’s aim to be a leader in the expansion of Nigeria’s indigenous independent energy industry,” Seplat Energy CEO Roger Brown said. The acquisition is a perfect fit with our strategy to build a sustainable business and deliver energy transition in Nigeria.”

Orjiako, who co-founded the energy business with Austin Avuru in 2009 through the collaboration of Shebah Petroleum Development Company and Platform Petroleum Joint Ventures, is credited with turning Seplat into one of Nigeria’s most successful indigenous oil and gas enterprises.

The planned ExxonMobil transaction is estimated to expand oil output by 186 percent, from 51,000 barrels per day to 146,000 barrels per day, while liquid and gas reserves would grow by 170 percent and 14 percent, respectively, to 650 million barrels and 1,712 billion standard cubic feet of gas.

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