ExxonMobil agrees to sell more Nigerian assets to Seplat for $1.3bn

United States-based ExxonMobil announced on Friday that it had reached an agreement to sell its equity interest in Mobil Producing Nigeria Unlimited to Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary Seplat Energy Offshore Limited.

This is coming five years after ExxonMobil exited Nigeria’s downstream oil sector following the sale of its 60 percent stake in Mobil Oil Nigeria Plc to Nipco Plc, an indigenous Nigerian downstream oil and gas company.

The energy giant said when finalised, the latest sale would include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which holds a 40 per cent stake in four oil mining licenses, including more than 90 shallow-water and onshore platforms and 300 producing wells.

Seplat Energy also said in a statement that Seplat Energy Offshore had entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1.28 million plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.

“This sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations,” the President, ExxonMobil Upstream Oil and Gas, Liam Mallon. “We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximize the value from our deepwater operations.”

ExxonMobil said it would 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.

It added that the sale would not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals.