- Seplat energy signs an agreement to acquire Mobil Producing Nigeria Unlimited (MPNU).
- Completing the transaction is subject to ministerial consent and other required regulatory approvals.
Seplat Energy Plc, a Nigerian energy company, has entered into an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation.
The transaction, subject to ministerial consent and other required regulatory approvals, is a sale and purchase agreement to acquire the entire share capital of MPNU for a purchase price of $1.28 million, plus up to $300 million contingent consideration.
According to a regulatory filing by the oil firm to the Nigerian Exchange Group (NGX), all of these are subject to a lockbox, working capital, and other adjustments.
“Seplat Energy Offshore Limited, a wholly-owned Nigerian subsidiary of Seplat Energy Plc, has entered into a sale and purchase agreement to acquire the entire share capital of MPNU for a purchase price of $1.283 million, plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.
“The Transaction encompasses the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria, which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 thousand barrels of oil equivalent per day (W.I.) in 2020 (92% liquids),” the statement read.
The firm, in its notice, explained that this transaction would bolster Seplat’s standing on the Nigerian and London stock exchanges, where it was currently listed. Also, the transaction is the first to be announced since the Nigerian government’s recently ratified Petroleum Industry Act (PIA), supporting its key objectives, the statement revealed.