Seplat Energy, the energy business co-founded and partially owned by Nigerian oil mogul Austin Avuru, is close to completing its long-awaited acquisition of ExxonMobil Corp.’s Nigerian assets after clearing regulatory and legal barriers.
The $1.3 billion transaction, which began in 2022, was delayed due to Nigeria’s rigorous regulatory landscape and approval difficulties. President Bola Tinubu made a critical declaration on Nigerian Independence Day, confirming the federal government’s preparedness to accept ExxonMobil’s sale of its oil and gas businesses to Seplat.
“The divestment will receive ministerial approval in a matter of days,” Tinubu said, underlining the agreement’s potential to boost national oil and gas production. He went on to describe its expected positive impact on the Nigerian economy, particularly as the country battles to reach its OPEC production objectives after years of underinvestment in the oil industry.
The acquisition focuses on ExxonMobil’s share in Mobil Producing Nigeria Unlimited (MPNU), a major operator in Nigeria’s upstream oil sector.CEO Roger Brown announced that Seplat Energy has prolonged the transaction until May 2024 to enable for regulatory approvals and legal disputes to be settled.
Seplat oil, co-founded by Nigerian oil magnates Austin Avuru and Ambrosie Orjiako, has emerged as a major player in the Nigerian energy sector. Despite a 4.7% decrease in average daily production, the company has remained resilient through strong financial management and strategic expansion attempts.
Seplat had a net profit of $42.89 million in the first half of 2024, despite operational obstacles. The company also raised its dividend payment ratio to 80 percent, up from 51.4% in the same time previous year.
The anticipated acquisition is a watershed moment for Seplat Energy, which could further cement its position as Nigeria’s largest publicly traded energy company. The enhanced production and income potential from ExxonMobil’s properties could have a substantial impact on the company’s future growth trajectory while also helping to stabilize Nigeria’s key oil sector.
