Seplat Energy has acquired Exxon Mobil’s oil wells for $1 billion, doubling its crude reserves and consolidating its leading position in the Nigerian oil sector. This acquisition, supported by President Bola Tinubu, could redefine the country’s energy future.
In a strategic move, Seplat Energy, an independent Nigerian energy supplier, bought the oil wells left abandoned by the American giant Exxon Mobil. This billion-dollar acquisition, finalized in Lagos, marks a turning point for the Nigerian oil sector and illustrates President Bola Tinubu’s ambition to strengthen local players.
An ambitious buyout to double Seplat Energy’s reserves
With this acquisition, Seplat Energy takes over the land activities of Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of Exxon Mobil. The operation allows Seplat to double its crude oil reserves, thus consolidating its leading position among independent hydrocarbon suppliers in Nigeria.
This transaction also includes offshore installations in shallow waters, reinforcing the strategic impact for Seplat. According to Maurel & Prom, the main shareholder of Seplat Energy with 20.46% of shares, the company could triple its gross operating surplus (Ebitda), reaching 800 million dollars, compared to 267 million in the first half of 2024.
Read also: Nigeria will recover 2 billion USD from Shell and Exxon
Bola Tinubu’s key role in sealing the deal
Initially signed in 2022, the agreement between Seplat and Exxon Mobil was blocked by the Nigerian National Petroleum Corporation (NNPC), citing strategic concerns. However, the coming to power of Bola Tinubu changed the situation.
Strongly supporting local private players, President Tinubu personally authorized the transaction through the Ministry of Power. Roger Brown, CEO of Seplat Energy, welcomed this crucial support: “President Tinubu has demonstrated his determination to make the oil sector more attractive to local companies like ours. »
A strategy to revitalize the Nigerian energy sector
This acquisition is part of a broader vision aimed at boosting the Nigerian economy by attracting private investment in the energy sector. For Bola Tinubu, strengthening local companies like Seplat Energy is essential to best exploit national oil resources while promoting greater economic independence.
The challenges ahead: between opportunities and expectations
Although this acquisition offers promising prospects, there is no shortage of open challenges. The integration of Exxon Mobil assets into Seplat’s operations must be done smoothly to maximize the benefits of this transaction. Furthermore, the global economic context, marked by fluctuations in oil prices, could influence long-term profitability.
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