By Udeme Akpan

THE assets Sale and Purchase Agreement, SPA between Seplat Energy Plc and Mobil Producing Nigeria Unlimited, MPNU, would be completed on Thursday, this week.

Seplat Energy disclosed this in its official prospectus, a legal document that contains details about its business, finances, and shareholding structure, for the final consideration of $800 million.

Last month, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, approved the sale of ExxonMobil’s onshore oil and gas assets in Nigeria to Seplat Energy.

Seplat Energy Plc, a leading Nigerian energy company, listed on both the Nigerian Exchange and the London Stock Exchange, said it has already informed investors about the assets as well as received an approval from the Financial Conduct Authority, FCA, in the United Kingdom.

It stated: “The transaction, which is expected to complete on December 12, 2024 is transformative for Seplat Energy, more than doubling production to around 120,000 barrels of oil equivalent per day.

“This will provide the company with a significant opportunity to further drive its growth and profitability, whilst contributing significantly to the Nigerian economy. These assets are of proven quality, located in one of the world’s leading hydrocarbon basins.”

It also stated: “Further amount of $257.5 million (is) deferred to December 2025, related to Decommissioning and Abandonment and certain Joint Venture (JV) costs that will be partially offset by JV cash calls.

“The after-tax impact of this component on MPNU (is) expected to be $25-$35 million. The company will incur $23 million in other transaction related costs, with $64 million regulatory consent fees reflected in adjustments to the cash consideration due at closing.

“The acquisition of the entire issued share capital of MPNU adds the following assets to the Seplat Group: 40 per cent operated interest in OML 67, 68, 70 and 104; 40 per cent operated interest in the Qua Iboe export terminal and the Yoho FSO; 51 per cent operated interest in the Bonny River Terminal (BRT); NGL recovery plant 9.6 per cent and participating interest in the Aneman-Kpono field.”