Seplat transforms to mega player with MPNU acquisition
Sopuruchi Onwuka
Seplat Energy Plc is no longer just a leading independent Nigerian energy company. It has maintained its route of inorganic growth to become of Africa’s biggest home grown companies with a large space in the petroleum and new energy industry.
The company which has been resilient with acquisition of financial and operating stakes of American ExxonMobil in the Mobil Producing Nigeria Unlimited refused to be shaken off the opportunity. It endured one of the longest transaction processes while fixating on gains that come with 40% operated interest in OML 67, 68, 70 and 104; 40% operated interest in the Qua Iboe export terminal and the Yoho FSO; 51% operated interest in the Bonny River Terminal (‘BRT’) NGL recovery plant; 9.6% participating interest in the Aneman-Kpono field; and approximately 1,000 staff and 500 contractors.
The indigenous company listed on both the Nigerian Exchange Limited and the London Stock Exchange, stated that the transaction is transformative, “more than doubling production and positioning the Company to drive growth and profitability, whilst contributing significantly to Nigeria’s future prosperity.”
The completion of this acquisition has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; 5 gas processing facilities; and 3 export terminals.
The transaction entails acquisition of the entire issued share capital of MPNU translating to automatic ownership of human and material assets previously controlled by ExxonMobil affiliates in the country. And by the deal, Seplat also inherits the entire staff of the divesting company.
Chairman of Seplat Energy, Senator Udoma Udo Udoma, said: “Seplat Energy sincerely thanks His Excellency, President Bola Ahmed Tinubu GCFR, for supporting this transaction, and appreciates the support and diligence of the various Ministries and regulators for all the work to reach a successful conclusion.
“We are delighted to welcome the MPNU employees to Seplat Energy. We are excited to begin our journey in a new region of the country, and we look forward to replicating the positive impacts we have achieved within our communities in our current areas of operations.
“Seplat’s mission is to deliver value to all our stakeholders, and we treasure the good relationships we have developed with the Government, regulators, communities and our staff.”
Roger Brown, Chief Executive Officer of Seplat Energy, said:“We have achieved a major milestone in the history of Seplat Energy and I extend my thanks to the entire Seplat team for their hard work and perseverance to complete this transaction.
“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I welcome them to the Seplat Energy Group.
“We have acquired a company with one of the best portfolios of assets and related infrastructure in a world class basin, providing enormous potential for the Seplat Group. Our commitment is to invest to increase oil and gas production while reducing costs and emissions, maximising value for all our stakeholders.
“MPNU is a perfect fit with our strategy to build a sustainable business that can deliver affordable, accessible and reliable energy for Nigeria alongside attractive returns to our shareholders.”
Seplat Energy declared that it is pursuing a Nigeria-focused growth strategy and is well positioned to participate in future asset divestments by international oil companies, farm-in opportunities, and future licensing rounds. The Company is a leading supplier of gas to the domestic power generation market.
In mapping out its strategic priorities and near-term outlook, Seplat stated that MPNU adds 71.4 kboepd average daily production, 409 MMboe of 2P reserves and 670 MMboe 2P + 2C reserves and resources as at 30 June 2024.
The company stated that its immediate tasks are to ensure smooth transition of MPNU staff into Seplat, and on the operations, to swiftly target numerous opportunities that exist to organically grow production and further enhance the value of the assets for all stakeholders.
