Seplat Energy announces plan to acquire Exxon’s shallow water assets
Seplat Energy, Nigeria’s largest listed oil and gas firm by market value, has announced that it is in competitive discussion to acquire ExxonMobil’s shallow-water oil assets in Africa’s biggest economy.
According to a statement from the company sent to Nigeria’s Stock Exchange (NSE), “deliberations are ongoing and accordingly, there can be no certainty as to the outcome.”
The Texas-based company is one of the largest oil and gas producers in Nigeria, with 106 operated platforms.
The current divestment plan is on a number of onshore fields Exxon shares (in joint ventures) with Nigerian state oil firm, Nigerian National Petroleum Corporation (NNPC). These include oil mining leases 66, 68, 70 and 104.
The company is looking to divest its business in Nigeria and focus on new developments in U.S shale and Guyana.
This has prompted Exxon to hold talks with several Nigerian companies in order to determine their interests in the fields.
Another contributing factor is the oil spills resulting from pipeline sabotage which has compelled some international companies, including Royal Dutch Shell, to reduce their presence in the country.
It was reported that Exxon’s share of oil production in those fields reached 120,000 bpd in 2017, the last year for which data was available.
Exxon divestment is not only in Africa –the company has also launched the sale of its stake in Azerbaijan’s largest oilfield, which would mark its retreat from the former Soviet state after 25 years. (BusinessDay)