Seplat Energy in talks to buy ExxonMobil's Nigerian shallow water assets

Seplat Energy in talks to buy ExxonMobil’s shallow water assets in Nigeria

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

Illustration; Seplat Energy

The company confirmed the press speculations regarding its plans to acquire ExxonMobil’s Nigerian shallow water business on Monday. In a statement arranged by its chief financial officer (CFO), Emeka Onwuka, the firm announced it was 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).

Back in April 2019, Reuters 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.

As reported by Rystad Energy in June, the firm has been inviting bids and looking for interested buyers for upstream assets not only in Nigeria but also in the U.S. 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.