Seplat to acquire ExxonMobil’s producing Nigeria shallow-water affiliate

Feb. 25, 2022
Seplat Energy agreed to acquire the equity interest of ExxonMobil in Mobil Producing Nigeria Unlimited for $1.283 billion plus up to $300 million in contingent payments.

Seplat Energy, a Nigerian independent oil and gas company, through its wholly owned subsidiary Seplat Energy Offshore Ltd., has agreed to acquire the equity interest of ExxonMobil in Mobil Producing Nigeria Unlimited for $1.283 billion plus up to $300 million contingent consideration.

When finalized, the sale will include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which holds a 40% stake in four oil mining licenses (OMLs 67, 68, 70, 104) including more than 90 shallow-water and onshore platforms and 300 producing wells.

The deal includes the Qua Iboe terminal, one of Nigeria’s largest export facilities and 51% interest in the Bonny River Terminal and Natural Gas Liquids (NGL) Recovery plants at EAP and Oso.

With the transaction, Seplat adds working interest production of 95,000 boe/d, 445 MMboe 2P reserves (92% liquids), and upside from potential LNG development in global markets with total working interest gas resources of 2.9 tcf (7.3 tcf JV), Seplat said in a February investor presentation.

Operating costs/bbl in 2020 were about $18/boe, according to Seplat.

The sale will not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals, ExxonMobil said in a Feb. 25 statement.

ExxonMobil will maintain a deepwater presence in Nigeria, including interests in the Erha, Usan, and Bonga developments via Esso Exploration and Production Nigeria Ltd. and Esso Exploration and Production Nigeria (Deepwater) Ltd.