Page 9 - AfrOil Week 10 2022

AfrOil INVESTMENT AfrOil

Seplat denies cancellation of MPNU deal

NIGERIA NIGERIA’S Seplat Energy sought this week to entire shallow-water portfolio in Nigeria, which
dispel confusion arising from media reports consists of MPNU’s 40% stakes in OML 67,
alleging that its plans to acquire Mobil Produc- OML 68, OML 70 and OML 104. It said it had
ing Nigeria Unlimited (MPNU), a subsidiary agreed to pay a price of $1.283bn, plus up to
of the US super-major ExxonMobil, had been $300mn, based on world oil prices and MPNU’s
upended by state-owned Nigerian National production levels, and had already arranged
Petroleum Corp. (NNPC). $825mn in debt financing through a syndicate of
In a Nigerian Exchange Ltd (NGX) filing Nigerian and African banks, along with a num-
dated March 7, Seplat attempted to clarify the ber of commodity and energy trading firms.
matter by explaining that its agreement with Nigerian news agencies then reported last
ExxonMobil concerned equity rather than week that NNPC, which holds the remaining
assets. 60% of equity in the blocks, had exercised its
More specifically, it stated that its wholly right to pre-empt the acquisition.
owned subsidiary Seplat Offshore had arranged The MPNU deal would give Seplat control
to buy the two ExxonMobil subsidiaries that over the US super-major’s entire shallow-water
own 100% of MPNU’s share capital, subject to Nigerian portfolio and also make it one of the
the consent of the Nigerian government. This largest companies to be traded in both Nigeria
means that MPNU itself will continue to hold and London. Additionally, it would help the
its 40% share in the joint operating agreement company achieve its goal of becoming Nigeria’s
(JOA) covering four shallow-water blocks off- leading private upstream operator. It would
shore Nigeria, while Seplat Offshore will hold also nearly triple the company’s output, adding
the equity in MPNU, it explained. MPNU’s 95,000 barrels per day to its own yields
“The Company wishes to clarify that the of about 51,000 bpd. ™
sale and purchase agreement (SPA), earlier
announced on the 25 February, 2022, deals
with the acquisition of the entire share capital
of MPNU’s shareholders, Mobil Development
Nigeria Inc. and Mobil Exploration Nigeria
Inc., being entities of ExxonMobil Corp. regis-
tered in Delaware (ExxonMobil),” the filing said.
“MPNU is not a party to the SPA and continues
to hold its interests, rights and obligations under
the NNPC/MPNU JOA.”
Seplat also dismissed recent news stories
alleging that the acquisition had been cancelled
altogether. “There are also some reports that the
SPA between ExxonMobil and Seplat Energy
has been terminated. Seplat Energy confirms
that no event of termination has occurred, and
the SPA remains valid and subsisting,” it said.
As of press time, neither ExxonMobil nor
NNPC had commented further on the matter.
Seplat announced in late February that it had
struck a deal for the acquisition of ExxonMobil’s Seplat will acquire ExxonMobil’s stakes in four Nigerian blocks (Image: ExxonMobil)

PERFORMANCE
Production stoppages hit 2 Libyan oilfields

LIBYA LIBYA’S oil production was reportedly down by biggest oilfield, Sharara, as well as shipments
about 330,000 barrels per day (bpd) earlier this from El Feel, a smaller site. Sharara usually
week as a result of the shutdown of two major yields around 270,000-300,000 barrels per day
oilfields. (bpd) of oil and El Feel up to 70,000 bpd but may
According to Argus Media, the disruption have been operating below full capacity when
was affecting flows of crude oil from Libya’s production stopped on March 3.

Week 10 09•March•2022 www. NEWSBASE .com P9