ExxonMobil has agreed to sell its equity interest in Mobil Producing Nigeria Unlimited to Seplat Energy for more than $1.2 billion, plus up to $300 million contingent consideration, according to a report by Vanguard.
The transaction is expected to close later this year once it completes the regulatory approval process, Business Wire reported.
“This sale will allow us to prioritize competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations,” Liam Mallon, president of ExxonMobil Upstream Oil and Gas, said in a Feb. 25 press release. “We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximize the value from our deep-water operations.”
Bryant Orjiako, chairman of Seplat Energy, shared his excitement about the deal.
“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,” he said to Vanguard.
ExxonMobil will maintain a significant deep-water presence in Nigeria, including interests in the Erha, Usan and Bonga developments, according to Business Wire.
“This is a win-win for both companies,” said Roger Brown, Seplat Energy CEO, in the Vanguard report. “Together, we will strengthen our focus on profitability and cash generation to reinvest in Nigeria’s energy development.”