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by admin
- December 11, 2024
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Seplat Energy Plc, a leading Nigerian energy firm, is in the final stages of acquiring Mobil Producing Nigeria Unlimited (MPNU) for $800 million. According to a statement from Seplat’s CEO, Roger Brown, the deal is set to close on December 12, marking a significant milestone in Nigeria’s energy sector.
Key Financial and Strategic Highlights:
- Acquisition Financing:
- Final cash payment of $672 million at closing, funded by:
- $350 million from a revolving credit facility.
- $300 million advance payment from ExxonMobil.
- $22 million from Seplat’s cash reserves.
- An additional $257.5 million is deferred until December 2025, covering specific joint venture costs and decommissioning.
- Final cash payment of $672 million at closing, funded by:
- Enhanced Production and Reserves:
- The acquisition will more than double Seplat’s production capacity to approximately 120,000 barrels of oil equivalent per day (kboepd).
- Proven and probable reserves (2P) will rise by 86% to 887 million barrels of oil equivalent (MMboe).
- Combined reserves (2P + 2C) will increase by 124% to 1,210 MMboe.
- Financial Uplift:
- Seplat’s pro forma revenue for H1 2024 is expected to increase by 245% to $1.46 billion.
- Adjusted EBITDA will grow by 199% to $800 million.
- Key Assets:
- Includes a 40% operated interest in Oil Mining Leases (OMLs 67, 68, 70, and 104) and the Qua Iboe export terminal.
- Integration of 1,000 staff and 500 contractors from MPNU.
- Regulatory Oversight and Relisting:
- Classified as a reverse takeover under UK Financial Conduct Authority rules, necessitating a relisting of Seplat’s shares post-acquisition.
- Engagement with investors and analysts planned after the deal closes.
Sector and Legal Context
This acquisition strengthens Seplat’s position in meeting local and global energy demands. Meanwhile, the Nigerian National Petroleum Company Limited has approached an Abuja High Court to cease its ongoing legal actions against MPNU and the Nigerian Upstream Petroleum Regulatory Commission, which had previously complicated the transaction.
By securing this transformative deal, Seplat Energy is poised to play a more significant role in Nigeria’s oil and gas sector while achieving substantial growth in revenue, operational capacity, and workforce.
