₦airaland Forum

“Seplat Energy is fully committed to working with the Nigerian Government to bring these strategically important national assets fully into Nigerian ownership alongside NNPC.

“Development of MPNU’s gas resources will support the Federal Government’s objective to achieve a pragmatic, progressive and just energy transition for Nigeria.”

Details of the Transaction

Providing details, it stated: “Seplat Energy will acquire the entire share capital of MPNU from Exxon Mobil Corporation, Delaware (USA Incorporated), with an effective date of 1 January 2021 for a consideration of $1,283 million, subject to lock-box, working capital and other adjustments at closing relative to the effective date.

“The Transaction agreement also includes potential additional contingent consideration of up to $300 million in total, payable over the period 1 January 2022 to 31 December 2026, and contingent upon average Brent crude oil prices exceeding $70 per barrel and subject to MPNU’s average working interest production exceeding 60 kboepd (JV: 150 kboepd) in such calendar year. The consideration implies an attractive EV / 2P metric of $2.9/boe, with significant gas upside potential.”

A strong operating portfolio

It stated: “The MPNU portfolio primarily consists of a 40% operating ownership of four oil mining leases (OMLs 67, 68, 70, 104) and associated infrastructure (NNPC is the 60% partner), the Qua Iboe Terminal, one of Nigeria’s largest export facilities and 51% interest in Bonny River Terminal and Natural Gas Liquids Recovery Plants at EAP and Oso.

“It does not include ExxonMobil’s deep-water assets in Nigeria. MPNU will operate as a stand-alone subsidiary of Seplat Energy and upon closing and following receipt of requisite regulatory approvals; Seplat Energy will align MPNU with its overall strategic goals and ESG objectives.”

Financing the Transaction

The statement stated: “The cash consideration payable under the Transaction will be funded through a combination of existing cash resources and credit facilities of Seplat Energy, and a new $550 million senior term loan facility and $275 million junior off-take facility. Global financing syndicate comprising Nigerian and international banks, as well as commodity trading companies.

“Contingent payments, if materialised on Brent oil price annual average above $70/bbl, will be funded through share of net cash flows from operations.”

Timetable and Conditions

It stated: “The transaction is subject to customary closing conditions for a transaction of this nature, including Ministerial Consent and regulatory approvals from the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Federal Competition and Consumer Protection Commission.

“The transaction is classified as a reverse takeover for the purposes of UK Listing Rules relating to the Company’s listing on the London Stock Exchange. Upon completion of the Transaction, Seplat Energy will need to re-apply for admission to the Official List. Accordingly, Seplat Energy will prepare a prospectus in respect of Seplat Energy as enlarged by MPNU in connection with the required reapplication for listing of such shares on the Official List and to trading on the London Stock Exchange’s Main Market for Standard-Listed securities.

“Under the Sale and Purchase Agreement, Seplat Energy will pay a deposit of $128 million, which will be applied towards the purchase price on closing. If the Transaction does not proceed, the deposit will be repaid to Seplat Energy where the agreement is terminated by Seplat Energy in certain circumstances. The Transaction will not result in any changes to the Board of Seplat Energy. The Company currently expects the Transaction to close in H2 2022.”

Chairman, CEO comment

Commenting on the transaction, Dr. Bryant (ABC) Orjiako, Chairman of Seplat Energy, said: “This is a transformational acquisition for Seplat Energy that strengthens our partnership with the national oil company, the NNPC, and consummates the spirit of the newly enacted PIA.

“As a significantly larger business, with a stronger resource base and greatly enhanced capabilities, we will be better positioned to provide sustainable energy solutions that drive growth and profitability for the benefit of all our stakeholders, particularly our host communities and the wider Nigerian economy.

“We fully support the aims of the Federal Government’s “Decade of Gas”, and this acquisition will accelerate our development of Nigeria’s gas resources to help achieve a just transition for our rapidly growing country.”

Similarly, Roger Brown, CEO of Seplat Energy, said: “This transaction underpins Seplat Energy’s drive to be a leader in the growth of the indigenous independent energy sector in Nigeria.

“The acquisition is a perfect fit with our strategy to build a sustainable business and deliver energy transition in Nigeria. Our financial strength has enabled us to attract high quality local and international capital providers to fund this transaction without diluting our existing shareholders and reflects our deliberate approach to capital allocation.

“We are determined to drive our growth through the extensive low-cost and low-risk production opportunities it delivers in the near term, whilst also developing longer-term opportunities to monetise our significant gas resources through domestic and export opportunities.

“This is a win-win for both companies. Together, we will strengthen our focus on profitability and cash generation to reinvest in Nigeria’s energy development.

“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I look forward to welcoming them to the Seplat Energy family

Transaction summary

In a statement obtained by Vanguard, the company, stated: “Seplat Energy Offshore Limited, a wholly-owned Nigerian subsidiary of Seplat Energy Plc, has entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1,283 million plus up to $300 million contingent consideration, subject to lock box, working capital and other adjustments at closing relative to the effective date

The Transaction encompasses the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria, which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd (W.I.) in 2020 (92% liquids).”

Transformational impact

According to the company, “The Transaction will create one of the largest independent energy companies on both the Nigerian and London Stock Exchanges, and bolster Seplat Energy’s ability to drive increased growth, profitability and overall stakeholder prosperity.

https://www.vanguardngr.com/2022/02/seplat-energy-set-to-acquire-mobil-producing-assets-in-nigeria/amp/

Jacobx007:
Na only mouth them get

what is the meaning of “internet penetration”

Pls explain this to me..

Thanks

Johnnyessence:
The narrow bridge have started cracking. Sagbe loju yo-yo kind of bridge.

jeez..

This is outrageous.

The people need to be warned

I need to post these your pictures on the front page

MALIGNANTGuest:
The ROAD was built for KeKe Napep

I saw the news and felt bad for the residents.

No wonder they’re always jealous of igbos

[quote author= post=110661465]NGpatriot pedestal bridge for cars
[/quote]very disgraceful

This is embarrassing

How can a governor do such?

This is disgraceful

A pedestrian bridge for cars

Nigerians complain over the newly constructed olaiya bridge in osun as the bridge wasn’t fully asphalted and apparently too narrow.

A user wrote: “This is the Olaiya Flyover that Gov. Oyetola commissioned in Osun state.

He couldn't even put asphalt on this road, look at the size? It won't even pass a Ford.

I swear ikpeazu is � times better than this man. The worst thing to happen to Osun state after Aregbesola”

https://twitter.com/von_bismack/status/1498290187469824010?s=21

Pictures of the bad bridge below…

Photo credit: johnnyessence

Franky70:
Another war!

tah

Nigeria military can’t fight external forces..

They rather raid homes in the east

benuejosh:
They won't sell Biafra flags o. It's Nigerian flags they are selling.

17 ppl killed in benue last week, dem no see you.

Mention igbo once, see as you don rush enter

Michelle70:
what is the lie there? Is govt house, hotel presidential and NDDC not sky scrappers?
Abi na Diobu u enter?
From ph airport to diobu

1. Close proximity, they’re not in close together like you said.

2. Akwa ibom you lied with.

3. Nddc building is 9(nine) stories only.

The Eedc office u see in the second pic is 9 stories, modotel is 11 stories and they’re all in close proximity.

This would be my last response to you.

I can tell you like lying and think you’re coy while refusing to learn.

Michelle70:
Akwaibom has, PH has three (govt house has two, hotel presidential has one and NDDC has too) with 2 under construction, one is along DLine

i regret responding to you.

You’re a liar.

Stop lying here..we’ve all been to akwa ibom and ph.

Michelle70:
when I say city having sky scrappers, I am talking about at least 5-20 sky scrappers by Nigerian standard, not one standing sky scrapper

Caught u in a lie and you divert.

Lemme indulge you sha..

so where in in SS has 5-20 skyscrapers standing together?

Michelle70:
First and second pic is from the SE while third pic is either SS, North west or Lagos
SE doesn't have sky scrappers.

Modified, third pic is a northern state, if u zoom in, u will find it is a northern state

know what you’re saying before you speak…

You’re embarrassing yourself

BKayy:
1st pic looks like Nnewi North Local Government Secretariat

Second is New Heaven Enugu

and the Third is Addis Ababa Ethiopia.

its not new haven, enugu.

It’s garden avenue, enugu

The crime rate in the west is disturbing.

That’s the only region where bank robberies still occur.,

Followed by a slew of ritual killings.

What perplexes me is the lackadaisical nature the Yorubas have for their region.

They only seem to take pride in discussing other places except theirs

Charleys:
The aerial view is umuahia. X

But the first picture is ABA. X

Drone image of the city is Asaba. X .

0/3

You failed woefully lol

Fairandlovely:
yes

“eeeeeeeeeee(buzzer sound)

Wrong answer lol

Fairandlovely:
Sabongari, kano state

lol

Is that your final answer?

Drone image of the city

Aerial view

Only well travelled and intelligent people know this

Sergio101:
Mr man don't abuse Igbo race unnecessarily.

Why not say he's your hero than putting "Igbo" in your lame sentence

it’s the same person with different accounts.

There here to insult, belittle igbos and igbo progress..

Check their posts..they’re similar

Fake news

It’s a cult war not ugm.

The cult leader has even be arrested by the youths.

Make una stop these things

South Africans know that their nationals are also in other countries, right?

Lipscomb:
Better than Isiagu or rapper.

if they come for you now, you’ll start crying

SonOfEl:
Where are the suffersticated brown roofers in nairaland? Lol

theyre on nairaland mouthing off at the igbos..

…while their parents are fighting for a means to survive