ExxonMobil Corporation, on Friday, announced that it had reached an agreement to sell its equity interest in its shallow-water business, Mobil Producing Nigeria Unlimited, to Seplat Energy, a Nigerian independent oil and gas company, through its wholly-owned subsidiary, Seplat Energy Offshore Limited.
ExxonMobil, however, said that it would retain its deepwater assets, adding that the sale of MPNU supported the company’s investment strategy and Nigeria’s efforts to enhance industry participation.
It said the transaction would close later this year pending regulatory approvals, according to a statement issued by the Manager, Media and Communications, MPNU, Oge Udeagha.
The President, ExxonMobil Upstream Oil and Gas, Liam Mallon, said, “This sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.
“We value the relationships we have spent decades building with the government and people of Nigeria, which will continue as we maximise the value from our deepwater operations.”
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The oil firm said when finalised, the sale would include the Mobil Development Nigeria and Mobil Exploration Nigeria equity ownership of Mobil Producing Nigeria Unlimited, which hold a 40 per cent stake in four oil mining licences.
According to the statement, the licences include more than 90 shallow-water and onshore platforms and 300 producing wells.
It added, “ExxonMobil will maintain a significant deepwater presence in Nigeria, including interests in the Erha, Usan and Bonga developments via Esso Exploration and Production Nigeria Limited and Esso Exploration and Production Nigeria (Deepwater) Limited.
“The sale will not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals.”
Seplat Energy said in a statement that its subsidiary, Seplat Energy Offshore Limited, had entered into a Sale and Purchase Agreement to acquire the entire share capital of MPNU for a purchase price of $1.283bn plus up to $300m contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.
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