$1.28bn Divestment: Seplat Confirms NNPC’s Termination of Court Case.
In a statement signed by CEO Roger Brown, Seplat confirmed it will now proceed to finalize the acquisition of ExxonMobil’s Nigerian shallow water oil assets, a deal initially announced in February 2022. Seplat expressed enthusiasm about advancing the acquisition following the removal of this legal obstacle.
NNPC had previously contested ExxonMobil’s sale of the assets to Seplat, citing its first right of refusal. The deal also faced delays due to regulatory issues.
“Seplat Energy commends the cooperation and progress achieved by all stakeholders and will diligently engage key stakeholders, including the government, to swiftly complete the acquisition,” the statement read.
The conclusion of the Exxon-Seplat deal is anticipated to inject significant capital into Nigeria’s oil industry, potentially boosting output. It may also signal to investors that similar transactions, such as Shell’s asset sale to Renaissance in January, could secure regulatory approval.
Nigeria, Africa’s largest oil producer, depends on crude oil for over 90% of its foreign exchange and half of its budget. However, recent years have seen a decline in output due to underinvestment and theft.
Major oil companies like Shell and TotalEnergies have been shifting their focus from onshore shallow water operations to deepwater drilling in Nigeria.
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Seplat noted the NNPC’s announcement on May 30, 2024, about the settlement agreement between NNPC, ExxonMobil Corporation, Delaware, and Mobil Producing Nigeria Unlimited (MPNU). Subsequently, Seplat was informed of the termination of court proceedings brought by NNPC against MPNU and its affiliates over the proposed divestment of MPNU’s shares to Seplat Energy Offshore Limited (SEOL).
Seplat is a leading indigenous energy company in Nigeria, listed on the Nigerian Exchange Limited and the Main Market of the London Stock Exchange. It is pursuing a growth strategy focused on Nigeria’s oil and gas sector while developing a power and new energy business to lead Nigeria’s energy transition.
