Seplat becomes Nigeria’s leading energy company after complete acquisition of MPNU

• Seplat Energy Plc has completed the acquisition of the assets of Mobil Producing Nigeria Unlimited in a $1.28 billion deal
• With the acquisition, Seplat Energy becomes Nigeria’s leading energy company
• The company said the acquisition will further consolidate its expansion plans

Seplat Energy Plc is Nigeria’s leading energy company following the complete acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil in a $1.28 billion deal.

In a statement on Thursday, December 12, the company said the transaction was transformative as it has more than doubled production and positions the company to drive growth and profitability.

The acquisition has expanded Seplat Energy’s assets to include equity in 11 blocks (onshore and shallow water Nigeria), 48 producing oil and gas fields, five gas processing facilities, and three export terminals.

Added to Seplat Group assets with the acquisition of the entire issued capital of MNPU are 40 per cent operated interest in OML 67, 68, 70, and 104; 40 per cent operated interest in the Qua Iboe export terminal and the Yoho FSO; 51 per cent operated interest in the Bonny River Terminal (BRT) NGL recovery plant; 9.6 per cent participating interest in the Aneman-Kpono field, and approximately 1,000 staff and 500 contractors.

MPNU adds substantial reserves and production to Seplat Energy, which include 409 MMboe 2P reserves and 670 MMboe 2P + 2C reserves and resources as of June 30, 2024, and six months 2024 average daily production of 71.4 kboepd.

Acquisition for expansion

Chairman of Seplat Energy, Senator Udoma Udo Udoma, said the transaction will enable the company to replicate previous positive impacts in its new areas of operations.

Udoma said, “Seplat Energy sincerely thanks President Bola Tinubu 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.”

Seplat Energy’s Chief Executive Officer, Roger Brown, maintained that the acquisition of MPNU is a good buy for Seplat, as it will increase its oil and gas production.

Brown said, “Today we have achieved a major milestone in the history of Seplat Energy and I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.

“MPNU's employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.

“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, maximising 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.”

Seplat-ExxonMobil deal has come a long way

Seplat Energy’s interest in acquiring ExxonMobil Corporation’s $1.28 billion onshore assets was approved in October 2024, more than two years after the deal was struck in February 2022.

President Bola Tinubu, in his Independence Day speech on October 1, said the deal will receive speedy ministerial approval in line with the Petroleum Industry Act (PIA) to create vibrancy in the sector and increase oil and gas production.

The approval excited Nigeria’s equities market as Seplat’s stocks trading at the Nigerian Exchange Limited saw a boost.

The deal was initially rejected by the Nigerian National Petroleum Corporation (NNPC) in the exercise of its right of first refusal. In May 2022, the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), declined to approve the transaction due to “overriding national interest.”

Also, on July 6, 2022, an Abuja-based court issued an interim injunction preventing ExxonMobil from completing any divestment of a subsidiary holding four licenses in Nigeria.

However, in a twist of fate, in May 2024, the NNPCL signed a settlement agreement for the ExxonMobil-Seplat deal, withdrew the lawsuit against the deal in June 2024, and granted approval for the sale to proceed in accordance with the PIA.

Chappal Energies completes acquisition of Equinor in $1.2 billion deal

Meanwhile, TheRadar reported that Chappal Energies acquired Equinor Nigeria Energy Company (ENEC), a subsidiary of Norway’s Equinor ASA, in an estimated $1.2 billion deal.

With the acquisition, Chappal Energies now controls ENEC, which holds a 53.85 per cent stake in the oil mining lease (OML) 128 oil and gas lease. This includes a 20.2 per cent interest in the Agbami oil field operated by Chevron and the operatorship of OML 129.