Seplat Energy Plc, a Nigerian energy company, is on the brink of completing $800m acquisition of Mobil Producing Nigeria Unlimited.

In a notice signed by the Chief Executive Officer of Seplat Energy Plc, Roger Brown, on Monday, the deal, expected to close on December 12, marks a step for Seplat in the country’s energy sector.

The company disclosed that the transaction will involve a final cash consideration of $672m payable to ExxonMobil at closing, with $128m already paid as a deposit in 2022. An additional $257.5m is deferred until December 2025, covering decommissioning, abandonment, and certain joint venture costs.

The funding for the $672m payment will be sourced from a $350m revolving credit facility, a $300m advance payment from ExxonMobil, and $22m from Seplat’s balance sheet cash.

“The $672 million payable on closing the transaction will be funded by $350 million drawn under the RCF, $300 million new 3-year Advance Payment Facility with ExxonMobil, and $22 million balance sheet cash,” the statement added.

This acquisition is set to more than double Seplat’s production capacity to about 120,000 barrels of oil equivalent per day (kboepd), enhancing its operational scale. The company’s proven and probable (2P) oil and gas reserves will increase by 86 per cent to 887 million barrels of oil equivalent (MMboe), while its combined 2P and 2C reserves will rise by 124 per cent to 1,210 MMboe.

“These assets, which include a 40 per cent interest in key OMLs and the Qua Iboe terminal, are strategically aligned with our growth ambitions,” the statement added.

On the financial side, the transaction will deliver a boost to Seplat Energy’s revenue and profitability. On a pro forma basis for the first half of 2024, revenue will increase by 245 per cent to $1.46bn, compared to Seplat’s standalone revenue of $422m. Adjusted earnings before interest, taxes, depreciation, and amortisation are expected to grow by 199 per cent to $800m over the same period.

The deal includes a 40 per cent operated interest in four Oil Mining Leases (OMLs 67, 68, 70, and 104) and the Qua Iboe export terminal. Additionally, the acquisition will bring approximately 1,000 staff and 500 contractors from MPNU into Seplat’s fold, further expanding its workforce.

Seplat’s combined production with MPNU for the first half of 2024 averaged 119.8 kboepd, representing a 148 per cent increase from its standalone production of 48.4 kboepd. This expanded output capacity positions the company to meet growing energy demand both locally and globally.

The acquisition, classified as a reverse takeover under UK Financial Conduct Authority rules, requires a relisting of Seplat Energy’s shares. Upon completion, the company plans to engage with investors and analysts in a post-acquisition conference call.

The PUNCH reported that the Nigerian National Petroleum Company Limited has applied to a High Court of the Federal Capital Territory, Abuja, to stop its ongoing legal action against several subsidiaries of Mobil Nigeria and the Nigerian Upstream Petroleum Regulatory Commission.

Source: https://punchng.com/seplat-nears-800m-acquisition-of-mobil/#google_vignette

Tinubu's grand plan in progress...

https://www.nairaland.com/8290029/could-tinubus-grand-plan

Correct one

AmazingGenius:

In a notice signed by the Chief Executive Officer of Seplat Energy Plc, Roger Brown, on Monday, the deal, expected to close on December 12, marks a step for Seplat in the country’s energy sector.

Source: https://punchng.com/seplat-nears-800m-acquisition-of-mobil/#google_vignette

#who be the CEO?
original one behind the SCENE, UNBOOKED one, make we no dey go hear MALTA story again soon oo, i go jus dey CHILL on MY ASUN & SHARWAMA & MALT.... i need to visit NIGERIA oo, latest 2028... i don miss some kind waka .. fresh SUYA (with veg, pepper, and ALFA KETCH UP) at SAABO , mokola

God of wonders

If Facebook was located in Nigeria, nairaland would’ve acquired it. Miracles do happen in Nigeria

Time to buy seplat stocks

Grand scheming

Time to buy more SEPLAT stocks it will go up in the coming months once the deal is concluded

Orjiakor!

All the Multinationals have exited the country finish. I hope all this indigenous companies will pay their staff very well

cyrusmillz:
Time to buy seplat stocks

thank you sweetie

They should conclude the deal na. Everyday "Seplat about to conclude Mobil acquisition".
Its now like a broken record. Conclude the darn deal and let everyone rest abeg.

Let them pay Spy police oh, ExxonMobil exploited spy police by Employing them and paying them the same amount that they pay Nigeria police force. And even given the money to Police to pay them. Yet these are workers that where employed by ExxonMobil and given ExxonMobil direct appointment letters, some of the spy were retirees from police, army etc. And most of them graduates.

Mobil exploited them and when they find out that the actual amount that ExxonMobil Nigeria received from ExxonMobil America for their salary was more than N800,000 per month but they Mobil managers eat the money and be paying them N70k, N80k etc. Spy has no option but to take them to court which spy won at supreme Court but being that they are in Nigeria where everyone does as he like ExxonMobil refused to implement the supreme Court judgement uptill today

Seplat and mobil, who's more profitable to be buying who? Hmm

cyrusmillz:
Time to buy seplat stocks

gasparpisciotta:
Time to buy more SEPLAT stocks it will go up in the coming months once the deal is concluded

The transaction has been factored in the current share price. However, it will still go up more.

Nodogragra4me:
Orjiakor!

Has been kicked out. Nigga owns less than 7%. In fact, it was when he got kicked out that this transaction started making a headway.

What asset? What asset does Mobil have when the were given lease ( renting)

Why 800m dollars. ?

Niger delta is just useless.

All this nonsense from NNPC

GigFc:
Seplat and mobil, who's more profitable to be buying who? Hmm

no mind them

NetbizBoss:
Let them pay Spy police oh, ExxonMobil exploited spy police by Employing them and paying them the same amount that they pay Nigeria police force. And even given the money to Police to pay them. Yet these are workers that where employed by ExxonMobil and given ExxonMobil direct appointment letters, some of the spy were retirees from police, army etc. And most of them graduates.

Mobil exploited them and when they find out that the actual amount that ExxonMobil Nigeria received from ExxonMobil America for their salary was more than N800,000 per month but they Mobil managers eat the money and be paying them N70k, N80k etc. Spy has no option but to take them to court which spy won at supreme Court but being that they are in Nigeria where everyone does as he like ExxonMobil refused to implement the supreme Court judgement uptill today

only if your government had sense. But then, what do you expect when they pack houseboys into politics positions!

Zuckerberg can bid for nairaland @ 1 billion dollars make we rest

Mosdiii:
All the Multinationals have exited the country finish. I hope all this indigenous companies will pay their staff very well

Like you mentioned, one of the reasons they left is unbearable overhead costs. Which includes good remuneration and welfare to it's staff.

Western companies have good conscience, they care about overall health, safety and life of their employees.

You can see most of them can't survive the current Nigerian climate anymore.

Nigerian, Chinese, Indian, Lebanese companies, over to you. These lots will cut corners.

Codes151:
What asset? What asset does Mobil have when the were given lease ( renting)

Why 800m dollars. ?

Niger delta is just useless.

All this nonsense from NNPC

Did they lease all their work instruments?

Basicend:


Did they lease all their work instruments?

after 60years?
How much is their instrument ?

Just Exxx FPSO was giving them 14m dollars daily.



Since 1952 till date, what instrument? What about the damage. SMH.

We just don’t have a sane leadership.

Now they selling off cuz of Guyana, go and see, ever youth there is collecting kickoff of over 1k dollars. And their leadership is holding them accountable

If Facebook were located in Nigeria, Nairaland would have acquired it. Amazing things can happen in Nigeria.

cyrusmillz:
Time to buy seplat stocks

You wise pass !

Chimaokigwe:


Has been kicked out. Nigga owns less than 7%. In fact, it was when he got kicked out that this transaction started making a headway.

Kicked out as in sacked or that the law of corporate governance stipulates tenure for such ventures.




Please post the link to his been sacked or kicked out.

Good one.

Those IOCs are the root cause of the rot in our oil sector.

This reform is smoking them out.
Let them all go. They can’t try 1% of all nonsense they tried here, assuming they are in the western world.

This was always going to happen. The cost of doing business in Nigeria for a fairly upright multinational is quite high. They'd rather leave than stay and work at 50% capacity

It's done...
We just finished d buffet welcoming seplat into the fold.

wonder233:
They should conclude the deal na. Everyday "Seplat about to conclude Mobil acquisition".
Its now like a broken record. Conclude the darn deal and let everyone rest abeg.

wonder233:
They should conclude the deal na. Everyday "Seplat about to conclude Mobil acquisition".
Its now like a broken record. Conclude the darn deal and let everyone rest abeg.

Acquisition at 99%. Seplat will host their operational flag tomorrow.

All formalities complete. To pay outstanding remaining.