Seplat to Double Oil Production With $800m Mobil Assets Acquisition

By Dipo Olowookere

Leading Nigerian energy company, Seplat Energy Plc, has disclosed that its acquisition of assets of Mobil Producing Nigeria Unlimited is expected to more than double its crude oil production to around 120,000 barrels per day.

Business Post reports that the transaction should be sealed by Thursday, December 12, 2024, with about $800 million to be pocketed by Mobil.

In 2022, Seplat deposited $128 million to Mobil for the transactions and will give the company the balance of $672 million after obtaining the approval of the Financial Conduct Authority (FCA). This will be paid from available cash and debt facilities, with no new equity issuance required.

In a notice to the Nigerian Exchange (NGX) Limited on Monday, Seplat said the acquisition would provide a significant opportunity to further drive its growth and profitability, whilst contributing significantly to the Nigerian economy.

It based this projection on the fact that Mobil’s assets are of proven quality, located in one of the world’s leading hydrocarbon basins.

Seplat, which also trades its shares on the London Stock Exchange (LSE), said the assets it intends to take over from Mobil include OML 67, 68, 70 and 104.

It stated that ERC Equipoise (ERCE) prepared an independent Competent Person’s Report (CPR) on these assets and certified that, as of June 30, 2024, Mobil had 409 mmboe of 2P oil and gas reserves, after having produced 99 mmboe since January 1, 2021.