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 companyâ€™s investment strategy and Nigeriaâ€™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, â€œThis sale will allow us to prioritise competitively advantaged investments in our strategic assets, and it supports the Nigerian governmentâ€™s efforts to grow its oil and gas operations.
â€œWe 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.â€
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, â€œExxonMobil 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.
â€œThe sale will not result in any loss of employment and is expected to close later this year subject to regulatory and other approvals.â€
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.