Lagos – Oil giant ExxonMobil will continue to operate its deepwater assets in Nigeria despite the planned sale of some of its assets to Seplat.
Seplat Energy Offshore Limited, a wholly owned Nigerian subsidiary of Seplat Energy Plc, is expected to pay a total of $1.583 billion to acquire the entire share capital of Mobil Producing Nigeria Unlimited, MPNU, from Exxon Mobil Corporation.
A breakdown of the funds showed that the deal entails a Sales and Purchase Agreement, SPA, to acquire the share capital of MPNU for a price of $1.283 billion, plus up to $300 million contingent considerations.
Findings showed that although the two companies have already locked the deal, it will require the approval of the Minister of States for Petroleum Resources, Timipre Sylva. The Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Federal Competition and Consumer Protection Commission are also expected to give approvals.
SweetcrudeReports had earlier reported that when finalised, the sale will include Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which holds a 40% stake in four oil mining licenses, including more than 90 shallow-water and onshore platforms and 300 producing wells.
But, ExxonMobil will maintain a significant deepwater presence in Nigeria, through its interests in the Erha, Usan and Bonga developments via Esso Exploration and Production Nigeria Limited and Esso Exploration and Production Nigeria (Deepwater) Limited.
Seplat and Liam Mallon, president, ExxonMobil Upstream Oil and Gas, have confirmed planned sale and purchase of the assets.
It was gathered that the deal does not include ExxonMobil’s deep-water assets in Nigeria, as the firm said it will continue to operate its deepwater assets.
Upon closing and following receipt of requisite regulatory approvals, MPNU will operate as a standalone subsidiary of Seplat Energy. Seplat said it will align MPNU with its overall strategic goals and ESG objectives.
Under the Sale and Purchase Agreement, Seplat Energy will pay a deposit of $128 million, which will be applied towards the purchase price on closing. If the transaction does not proceed, the deposit will be repaid to Seplat Energy where the agreement is terminated by Seplat Energy in certain circumstances.
The transaction will not result in any changes to the board of Seplat Energy. The company currently expects the transaction to close in the second half, H2, 2022.
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