DowJones Newswire
25 February 2022
By Jaime Llinares Taboada
Seplat Energy PLC said Friday that it has agreed to acquire Exxon Mobil Corp.'s shallow water assets in Nigeria for $1.28 billion plus up to a $300 million contingent consideration.
The London-listed energy company is buying a 40% operating stake in four oil leases, which will increase its annual net production to 146,000 oil-equivalent barrels a day from 51,000 barrels--based on 2020 output--and expand its proven and probable reserves by 89% to 945 million oil-equivalent barrels.
In addition, Seplat will also receive the Qua Iboe export terminal and a 51% stake in the Bonny River natural gas liquids terminal. The deal excludes Exxon's deep-water fields in Nigeria.
Seplat said that the deal will create one of the largest independent energy companies on the London and Nigerian stock exchanges.
"This transaction underpins Seplat Energy's drive to be a leader in the growth of the indigenous independent energy sector in Nigeria," Chief Executive Roger Brown said.
Seplat said that it will fund the deal through a new $550 million senior term loan facility and $275 million junior offtake facility, in addition to existing cash resources and credit facilities.
The transaction, which is deemed as a reverse takeover for the LSE, is expected to close in the second half of 2022.
Shares in Seplat at 0849 GMT were up 7.3% at 99.8 pence.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT