Seplat Energy PLC has announced the extension of its share sale and purchase agreement with Mobil Development Nigeria Inc. and Mobil Exploration Nigeria Inc. to an undisclosed date.
The Lagos-based oil and gas firm, which holds assets in Nigeria, clarified that the extension pertains to the acquisition of Exxon Mobil Corp’s shares in Mobil Producing Nigeria Unlimited.
Originally disclosed in February 2022, Seplat Energy had unveiled plans for a USD1.28 billion deal to acquire ExxonMobil’s entire offshore shallow water business in Nigeria.
”The funding for the transaction was to be sourced from existing cash resources, credit facilities, a USD550 million loan facility, and a USD275 million offtake facility,” the firm announced.
The extension of the share sale and purchase agreement comes in light of ongoing legal proceedings and the need for regulatory approvals.
Seplat Energy emphasized its dedication to completing the transaction at the earliest feasible opportunity and highlighted the preservation of the deal’s integrity during this period.
Despite the extension, Seplat Energy assured stakeholders that there have been no substantial alterations to the terms outlined in the announcements made in May 2023 and February 2022.
”The headline consideration, effective date, and contingent payment structure remain unchanged,” the firm noted.
This is the second time Seplat Energy has extended the agreement. Following the announcement, shares in Seplat Energy closed down by 2.6% to 167.50 pence each in London on Thursday.
Earlier this year, Seplat Energy Plc announced the successful completion of mechanical and installation works at its Anoh gas plant, a development to significantly bolster the company’s gas production capacity upon full operation.
Situated near Owerri in Nigeria’s southeastern region, the Anoh gas plant is a collaborative effort between Seplat Energy Plc and NNPC Gas Infrastructure Company Ltd.
Roger Brown, Seplat’s Chief Executive Officer, emphasized the strategic significance of the Anoh project, stating, “Anoh is an important strategic project for Seplat.”
