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Seplat Buys Shallow-water Business Assets From ExxonMobil For $1.283bn

 

ExxonMobil Boosting Its Recoverable Resource To 11 Billion Barrels
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Nigerian independent oil and gas company, Seplat Energy has agreed to purchase an equity interest in ExxonMobil Corporation’s shallow-water business, Mobil Producing Nigeria Unlimited (MPNU).

Naija News reports that the Manager, Media and Communications, MPNU, Oge Udeagha, made this known in a statement issued on Friday.

Udeagha disclosed that Seplat Energy agreed to buy the assets through its wholly-owned subsidiary, Seplat Energy Offshore Limited for $1.283 billion, adding that the transaction would close later this year pending regulatory approvals.

She added that ExxonMobil would retain its deepwater assets, adding that the sale of MPNU supported the company’s investment strategy and Nigeria’s efforts to enhance industry participation.

Also reacting in a statement on Friday, Seplat Energy said its subsidiary, Seplat Energy Offshore Limited, had agreed to acquire the entire share capital of MPNU for a purchase price of $1.283bn plus up to $300m contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.

The President, ExxonMobil Upstream Oil and Gas, Liam Mallon, said the sale will allow the company to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.

He said: “We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximise the value from our deepwater operations.”

“When finalised, the sale would include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which hold a 40 per cent stake in four oil mining licences.

“The licences include more than 90 shallow-water and onshore platforms and 300 producing wells.

“ExxonMobil will maintain a significant deepwater presence in Nigeria, including interests in the Erha, Usan and Bonga developments via Esso Exploration and Production Nigeria Limited and Esso Exploration and Production Nigeria (Deepwater) Limited.

“The sale will not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals.