Seplat formally brings ExxonMobil’s Nigerian business into its fold

Nigeria’s oil and gas company Seplat Energy has completed the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from U.S.-headquartered energy major ExxonMobil.

Seplat describes the transaction as “transformative” since it more than doubles its production, positioning the company to drive growth and profitability, while benefitting the country.

Udoma Udo Udoma, Chairman of Seplat Energy, said: “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.”

The Nigerian player’s immediate tasks as operator entail ensuring a smooth transition of MPNU staff into Seplat. Furthermore, the new owner intends to pursue opportunities to grow production and further enhance the value of assets for all stakeholders.

“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,” noted Roger Brown, Chief Executive Officer (CEO) of Seplat Energy.

Seplat has gained access to what it says are substantial reserves – 409 million barrels of oil equivalent (MMboe) 2P reserves and 670 MMboe 2P + 2C reserves and resources as of June 30, 2024, paired with an average daily production of 71.4 thousand barrels of oil equivalent per day (kboepd) during the first six months of 2024.

The Nigerian firm announced its intention to buy ExxonMobil’s Nigerian business in November 2021 and confirmed it in February 2022. After the closing date was pushed back two times, first in May 2023 and then a year later, the deal received approval from the country’s Minister of Petroleum Resources in October 2024.

Meanwhile, ExxonMobil recently disclosed its new corporate plan up to 2030. Alongside delivering a growth potential of $20 billion in earnings and $30 billion in cash flow, the U.S. major expects to increase upstream production and pursue up to $30 billion in lower emissions investment opportunities over the next six years.