…..Reports production increase from 48 kboepd to 120 kboepd  

Maurel & Prom (M&P) has disclosed that Seplat Energy, a leading Nigerian energy company of which M&P is the largest shareholder with a 20.46% holding, has completed the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil Corporation.

MPNU, which includes the entire offshore shallow water business of ExxonMobil in Nigeria, is an established operator with a highly skilled local team and a proven track record of safe operations. The Transaction is transformative for Seplat Energy, and provides significant opportunities to further drive its growth and profitability:

• Production increase of 148% on a proforma basis for the first half of 2024, from 48 kboepd to 120 kboepd;
• 2P reserves increase of 86% on a proforma basis as at 30 June 2024, from 478 mmboe to 887 mmboe;
• Adjusted EBITDA increase of 199% on a proforma basis for the first half of 2024, from $267 million to $800 million.

The cash consideration paid to ExxonMobil at closing was $672 million, fully funded from Seplat Energy’s available cash and debt facilities. The company retains a strong balance sheet position post acquisition, with a proforma net debt to EBITDA ratio similar to Seplat Energy’s reported leverage of 0.8x at 30 June 2024.

When finalized, the sale will include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which holds a 40% stake in four oil mining licenses, including more than 90 shallow-water and onshore platforms and 300 producing wells.

ExxonMobil further said that it 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, and the sale will not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals.