Seplat Energy Plc, a prominent Nigerian energy company that is listed on both the Nigerian and London Stock Exchanges will double crude oil production to 120,000 barrels per day after completing a $800 million deal to acquire ExxonMobil’s Nigerian assets.
According to a document, the Sale and Purchase Agreement (SPA) for the assets between Mobil Producing Nigeria Unlimited (MPNU) and Seplat Energy Plc is scheduled to conclude on Thursday formally.
In its formal prospectus, which was made public yesterday, the Nigerian indigenous oil and gas business revealed that the final consideration was $800 million instead of the original $1.28 billion.
To give investors information about a securities or investment offering, a listed company publishes its prospectus, a legal document that includes information on its operations, finances, and shareholding structure.
More than two years after the first agreement was signed in February 2022, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) authorized the sale of ExxonMobil’s onshore oil and gas assets in Nigeria to the local firm Seplat Energy in October.
Following the completion of the transaction, Seplat Energy Plc informed the investing public of the new assets and stated that it also obtained approval from the UK’s Financial Conduct Authority (FCA).
Seplat Energy Plc called the transaction “transformational,” adding that when the sales and buy agreement was finalized, it would increase its crude oil production to about 120,000.
“The transaction, expected to be completed on December 12, 2024, is transformative for Seplat Energy, more than doubling production to around 120,000 barrels of oil equivalent per day.
“This will provide the company with a significant opportunity to further drive its growth and profitability, whilst contributing significantly to the Nigerian economy. These assets are of proven quality, located in one of the world’s leading hydrocarbon basins,” the company said.
Seplat Energy listed the transaction details, noting that the final cash consideration payable to ExxonMobil at closing is now $672 million, with a $128 million deposit paid in 2022 at the first SPA signing, bringing the total consideration at closing to $800 million.
It announced that the deal is completely supported by existing cash and debt facilities, with no new stock issue necessary.
