Seplat Energy Finalizes Acquisition of Mobil Nigeria from ExxonMobil

Seplat Energy Plc, a prominent international oil company listed on the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE), has finalized its acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation.

The announcement was made in a statement issued on Thursday, signed by Seplat Energy’s Chief Executive Officer, Roger Brown.

This acquisition marks a significant milestone for Seplat, more than doubling its production capacity to approximately 120,000 barrels of oil equivalent per day.

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The transaction received approval from the federal government of Nigeria in October 2024, allowing Seplat Energy to acquire ExxonMobil’s onshore assets.

Although an $800 million deal agreement was reached in February 2022, the acquisition faced regulatory hurdles and underwent prolonged review before its completion.

Employee Integration and Positive Impact

Seplat Energy has pledged to integrate MPNU employees into its workforce while maintaining the positive impacts of the company’s operations.

Udoma Udo Udoma, Chairman of Seplat Energy, expressed gratitude to the government and regulatory bodies for their support. He stated:

“Seplat Energy sincerely thanks His Excellency, President Bola Ahmed Tinubu GCFR, for supporting this transaction, and appreciates the support and diligence of the various ministries and regulators for all the work to reach a successful conclusion.

“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.”

Roger Brown, CEO of Seplat Energy, highlighted the strategic importance of the acquisition, emphasizing the company’s commitment to boosting oil and gas production while adhering to international standards and prioritizing environmental sustainability.

He remarked:

“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.”

Key Insights

Seplat Energy Plc is Nigeria’s leading indigenous energy company, listed on the Premium Board of the NGX (NGX: SEPLAT) and the Main Market of the LSE (LSE: SEPL).

The acquisition deal was initially valued at $1.283 billion, including up to $300 million in contingent payments over five years and standard adjustments. However, the final transaction value was adjusted to $800 million.

This acquisition aligns with a trend among major oil companies, including Mobil Nigeria, Eni, and Equinor, which have been divesting onshore assets to focus on offshore operations. Factors such as economic challenges, oil theft, and pipeline vandalism have likely influenced this shift.