Seplat Power Plc has introduced the discharge of its prospectus for the acquisition of Mobil Producing Nigeria Limitless (MPNU).
This growth follows the federal authorities’s approval in late October 2024 for the sale of ExxonMobil’s onshore property to Seplat Power, over two years after the deal was agreed.
In an announcement launched on December 9, 2024, and signed by its Chief Government Officer, Roger Brown, Seplat confirmed that the acquisition might be finalized on December 12, 2024.
The transaction is about to greater than double Seplat’s manufacturing capability, boosting output to roughly 120,000 barrels of oil equal per day.
Describing the acquisition as a “transformative” milestone, the assertion highlighted Seplat Power’s potential for accelerated development and elevated profitability.
“This transaction, which is predicted to be accomplished on December 12, 2024, is transformative for Seplat Power, greater than doubling manufacturing to round 120,000 barrels of oil equal per day. It supplies the corporate with a major alternative to drive development and profitability whereas making significant contributions to the Nigerian financial system,” the assertion learn.
The property being acquired are considered high-quality additions to Seplat’s portfolio.
What to know
Seplat Power’s $800 million MPNU acquisition contains:
- $672 million payable at closing.
- A $128 million deposit already paid in 2022.
- And a deferred fee of $257.5 million due by December 2025 to cowl decommissioning and three way partnership (JV) prices, with no new fairness issuance required.
The transaction raises professional forma 2P reserves by 86% to 887 MMboe, boosts manufacturing by 148% to 119,800 boepd, will increase income by 245% to $1.456 billion, and grows adjusted EBITDA by 199% to $800 million.
- The expanded portfolio provides fairness in 11 blocks, 48 producing fields, 5 gasoline processing amenities, and three export terminals, with vital alternatives for short-term oil positive aspects, in-fill drilling, and multi-Tcf gasoline initiatives.
Seplat to achieve key property with MPNU acquisition
Seplat Power’s acquisition of Mobil Producing Nigeria Limitless (MPNU) brings vital property, together with a 40% operated curiosity in OMLs 67, 68, 70, and 104, in addition to stakes within the Qua Iboe export terminal, Yoho FSO, and Bonny River Terminal.
Moreover, the deal transitions roughly 1,000 employees and 500 contractors to Seplat’s workforce.
MPNU’s oil and gasoline reserves, at 409 MMboe, will considerably enhance Seplat Power’s 2P reserves to 887 MMboe.
As well as, manufacturing is projected to rise 148%, boosted by MPNU’s 67 contributions.
Funding completion
Seplat Power’s acquisition of MPNU, introduced on February 25, 2022, and efficient from January 1, 2021, was initially valued at $1.283 billion, together with as much as $300 million in contingent funds unfold over 5 years, together with customary changes.
- The ultimate consideration, after changes, is $800 million, with $128 million already paid as a deposit.
- Funding for the remaining $672 million will come from credit score amenities and money, with an extra $257.5 million deferred till December 2025 for decommissioning and JV prices.
- The transaction is about to be accomplished on 12 December 2024, with Seplat’s shares anticipated to be readmitted to the UK Monetary Conduct Authority’s Official Checklist the next day.
Backstory
On February 25, 2022, Seplat Power Plc introduced its $1.28 billion acquisition of Mobil Producing Nigeria Limitless (MPNU) from ExxonMobil Company, aiming to take over its offshore shallow water operations.
- Nonetheless, the Nigerian Nationwide Petroleum Company (NNPC) exercised its Proper of First Refusal (RFR) beneath the Joint Working Settlement (JOA), difficult the deal.
- In Could 2022, the federal authorities declined to approve the transaction, citing overriding nationwide curiosity.
- On July 6, 2022, an Abuja courtroom issued an interim injunction stopping ExxonMobil from divesting its subsidiary holding 4 licenses in Nigeria.
By July 2024, the authorized limitations have been lifted as NNPC withdrew its lawsuit and permitted the sale consistent with the Petroleum Business Act (PIA), paving the best way for the transaction to maneuver ahead.
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