Seplat considers acquisition of ExxonMobil’s shallow water assets

Nigerian oil and gas company Seplat Energy has revealed it is actively engaged in negotiations to acquire ExxonMobil’s shallow water assets in Nigeria.

The company confirmed speculations regarding its plans to acquire ExxonMobil’s Nigerian shallow water business, yesterday.

The company has accelerated asset divestments in Africa this year, selling an 80 per cent interest in a Ghanaian offshore block and proposing to offload its stake in the Doba oilfield in Chad.

In a statement arranged by its Chief Financial Officer (CFO), Emeka Onwuka, the firm announced it was currently engaged in competitive discussions for the acquisition of these assets together with an unnamed partner.

According to Seplat Energy, “Deliberations are ongoing and accordingly, there can be no certainty as to the outcome.”

The company did not reveal any details regarding the assets it plans to acquire, although, it did explain that a further announcement will be made as and when appropriate, in line with regulatory requirements.

ExxonMobil has interests in Nigerian offshore oil fields through its subsidiaries as part of a joint venture with Nigerian state oil firm, Nigerian National Petroleum Corporation (NNPC).

Reuters had in 2019, informed that the firm had held talks in regards to the sale of stakes in onshore and offshore oil and gas fields in Nigeria as part of its plan to focus on new developments in the U.S. shale and Guyana. At the time, the potential disposals were expected to raise up to $3 billion.

ExxonMobil began operations in Nigeria in 1955 and is considered to be one of the largest oil and gas producers in the country, with 106 operating platforms.

Mobil has been inviting bids and looking for interested buyers for its upstream assets not only in Nigeria but also in the US Gulf of Mexico, the UK North Sea, Germany, Malaysia, Indonesia, Romania, Azerbaijan, Vietnam, Chad and Equatorial Guinea as part of its wider plan to generate $15 billion by 2021 and $25 billion by 2025 from divestments.