Nigeria’s leading energy group- Seplat Energy Plc, listed on both the Nigerian Exchange Limited and the London Stock Exchange, on Thursday announced that it finally completed the acquisition of the entire issued share capital of MPNU of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil after more than two years.

Investdata News recalls that Seplat Energy had in a February 25, 2022 statement, put the purchase price at $1.283bn, plus up to $300m contingent consideration from Mobil Development Nigeria Inc (MDNI) and Mobil Exploration Nigeria Inc (MENI), entities of Exxon Mobil Corporation registered in Delaware, USA (ExxonMobil).

The company in Thursday’s statement, said the transaction was transformative, as it more than doubles production capacity, giving it combined assets of 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; five gas processing facilities; and 3 export terminals.

Also, approximately 1,000 staff and 500 contractors will transition to the Seplat Group, positioning the company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.

The deal, it said, brings onboard to the Seplat Group: 40% operated interest in OML 67, 68, 70 and 104; 40% operated interest in the Qua Iboe export terminal and the Yoho FSO; 51% operated interest in the Bonny River Terminal (BRT) NGL recovery plant; 9.6% participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors will transition to the Seplat Group.

Commenting on the development, Senator Udoma Udo Udoma, Chairman of Seplat Energy, expressed the group’s appreciation to President Bola Ahmed Tinubu, “for supporting this transaction, and appreciates the support and diligence of the various Ministries and regulators for all the work to reach a successful conclusion.

“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations,” he said.

Seplat’s mission, he continued, “is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the Government, regulators, communities and our staff.”

Also commenting, Roger Brown, Chief Executive Officer of Seplat Energy, described the deal as “a major milestone in the history of Seplat Energy and I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.

“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.”

The obviously elated Brown enthused further: “We have acquired a company with one of the best portfolios of assets and related infrastructure in a world class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.

“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders.”

By finalising the transaction, he said, MPNU in the near-term adds substantial reserves and production to Seplat Energy; 409 MMboe 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024 and 6M 2024 average daily production of 71.4 kboepd.

As operator, Seplat’s immediate tasks, the statement stressed, are to ensure smooth transition of MPNU staff into Seplat, and on the operations, to swiftly target numerous opportunities that exist to organically grow production and further enhance the value of the assets for all stakeholders.

The statement assured that detailed guidance for the enlarged group in 2025 will be provided with Seplat’s full year 2024 results, expected in February 2025, just as further announcements will be made as and when appropriate, in line with regulatory requirements.

Investdata News recalls that after over two years of back-and-forth movements, denials, claims and counterclaims, Seplat Energy Plc, two months ago got the blessing of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to proceed with the acquisition of the entire issued share capital of MPNU.

Trouble started for Seplat Energy in August 2022, when it announced the receipt of a letter from Nigeria’s Minister of State for Petroleum Resources to the effect that the then President Muhammadu Buhari had given a Ministerial Consent for the cash acquisition.

The Ministerial approval, Seplat said in its statement by Emeka Onwuka, its then Chief Financial officer, which was filed with the NGX, was given by Buhari in his capacity as Minister of Petroleum Resources. The ministerial consent, he continued was granted pursuant to the powers of the Minister under Paragraphs 14-16 of the First Schedule of the Petroleum Act, 1969. A separate announcement from the State House had earlier been released.

In the letter, the then President directed that the Minister of State Petroleum Resources should convey the Ministerial Consent to all relevant parties, including but not limited to the NUPRC, the Nigerian National Petroleum Company Limited (NNPCL), the ExxonMobil companies, the Federal Competition and Consumer Protection Commission (“FCCPC”), and Seplat Energy/Seplat Energy Offshore Limited.

The President also further directed that the HMSPR ensures that the ExxonMobil/Seplat Energy operating entity (being MPNU) carries out operatorship of all the OMLs in the related shallow water assets to optimise production in support of Nigeria’s OPEC quota in the short term as well as ensure accelerated development and monetisation of the gas resources in the assets for the Nigerian economy.

But in a swift reaction some hours afterwards, the NUPRC issued a statement reminding all that it is the sole regulatory agency of the industry with authority of such matters, insisting that its earlier decision to withhold Ministerial assent remains in place.

By the latest development, however, the transaction is expected to birth one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, just as it would bolster Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity.