Seplat Energy Plc has reiterated its determination to finalize the acquisition of Nigerian oil and gas assets from ExxonMobil Corporation, a deal that has faced delays from the Federal Government for over a year.
The dual-listed company on the Lagos and London stock exchanges hopes that President Bola Ahmed Tinubu will take a different approach from his predecessor, Muhammadu Buhari, who initially approved the transaction but later reversed the decision.
Seplat’s CEO, Roger Brown, stated, “We are still interested in the assets. We still value the company we are acquiring. We believe it will be a game-changing operation.”
The deal, announced in February 2022, involves Seplat paying $1.3 billion for an Exxon unit that holds a 40% operating stake in four shallow-water licenses. This acquisition would nearly quadruple Seplat’s oil output to over 130,000 barrels per day, making it one of the largest divestments in Nigerian history, according to analysts.
However, the Nigerian National Petroleum Company Limited (NNPCL), which owns 60% of the permits, opposed the sale and filed a lawsuit against ExxonMobil, asserting its right to acquire the blocks directly from the American major.
In response, the CEO of Seplat disputed the NNPCL’s claim, arguing that his company is purchasing a subsidiary rather than licenses. He clarified, “What we are buying are shares sold by U.S. companies, so that is a completely different animal because we are buying a company.”
Seplat Energy remains optimistic about the completion of the transaction and looks forward to overcoming the regulatory hurdles to fulfill its strategic objectives.
