Seplat Energy releases prospectus for Mobil acquisition, targets $1.45 billion revenue 

This development follows the federal government’s approval in late October 2024 for the sale of ExxonMobil’s onshore assets to Seplat Energy, over two years after the deal was agreed.

In a statement released on December 9, 2024, and signed by its Chief Executive Officer, Roger Brown, Seplat confirmed that the acquisition will be finalized on December 12, 2024.

The transaction is set to more than double Seplat’s production capacity, boosting output to approximately 120,000 barrels of oil equivalent per day.

Describing the acquisition as a “transformative” milestone, the statement highlighted Seplat Energy’s potential for accelerated growth and increased profitability.

“This transaction, which is 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. It provides the company with a significant opportunity to drive growth and profitability while making meaningful contributions to the Nigerian economy,” the statement read. 

The assets being acquired are regarded as high-quality additions to Seplat’s portfolio.

Seplat Energy’s $800 million MPNU acquisition comprises:

The transaction raises pro forma 2P reserves by 86% to 887 MMboe, boosts production by 148% to 119,800 boepd, increases revenue by 245% to $1.456 billion, and grows adjusted EBITDA by 199% to $800 million.

Seplat Energy’s acquisition of Mobil Producing Nigeria Unlimited (MPNU) brings significant assets, including a 40% operated interest in OMLs 67, 68, 70, and 104, as well as stakes in the Qua Iboe export terminal, Yoho FSO, and Bonny River Terminal.

Additionally, the deal transitions approximately 1,000 staff and 500 contractors to Seplat’s workforce.

MPNU’s oil and gas reserves, at 409 MMboe, will significantly boost Seplat Energy’s 2P reserves to 887 MMboe.

In addition, production is projected to rise 148%, boosted by MPNU’s 67 contributions.

Seplat Energy’s acquisition of MPNU, announced on February 25, 2022, and effective from January 1, 2021, was originally valued at $1.283 billion, including up to $300 million in contingent payments spread over five years, along with standard adjustments.

On February 25, 2022, Seplat Energy Plc announced its $1.28 billion acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation, aiming to take over its offshore shallow water operations.

By July 2024, the legal barriers were lifted as NNPC withdrew its lawsuit and approved the sale in line with the Petroleum Industry Act (PIA), paving the way for the transaction to move forward.

By July 2024, the legal barriers were lifted as NNPC withdrew its lawsuit and approved the sale in line with the Petroleum Industry Act (PIA), paving the way for the transaction to move forward.