Seplat Energy Plc says its acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil will be completed on December 12, with a final consideration of $800 million.

On October 21, Gbenga Komolafe, the chief executive officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced approval of the deal by the federal government.

In a statement, Seplat Energy announced the publishing of the prospectus in relation to the acquisition.

The energy firm said the publication followed receipt of approval from the financial conduct authority (FCA) in the United Kingdom (UK).

“The transaction, which is expected to complete on 12 December 2024 is transformative for Seplat Energy, more than doubling production to around 120,000 barrels of oil equivalent per day and providing the Company with a significant opportunity to further drive its growth and profitability, whilst contributing significantly to the Nigerian economy,” the statement reads.

“These assets are of proven quality, located in one of the world’s leading hydrocarbon basins.”

According to the statement, Seplat Energy’s $800 million MPNU acquisition includes $672 million final cash consideration payable to ExxonMobil at closing, and $128 million deposit paid in 2022 at first sale and purchase agreement (SPA) signing.

The energy firm said the payment also comprises deferred payment of $257.5 million due by December 2025 to cover decommissioning and joint venture (JV) costs, “with no new equity issuance required”.

Seplat said the deal is fully funded from available cash and debt facilities, and no new equity issuance required.

The company said the transaction would increase Seplat’s pro forma 2P reserves by 86 percent to 887 million barrels of oil equivalent (MMboe).

Pro forma 2P oil and gas refers to the sum of a company’s proven and probable oil reserves.

Seplat said the transaction would also boost production by 148 percent to 119,800 million barrels of oil equivalent per day (boepd); increase revenue by 245 percent to $1.456 billion; and grow adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 199 percent to $800 million.

“The enlarged company has equity in 11 blocks in onshore and shallow water Nigeria, 48 producing oil & gas fields, 5 gas processing facilities, and 3 export terminals,” Seplat said.

“The company has license portfolio with multiple high-potential investment opportunities to drive growth

“It has short term oil gain (STOG) activities focused on well stock and facilities and multiple in-fill and exploration drilling locations.”

Festus Keyamo, minister of aviation and aerospace development, has asked Ademola Adeleke, governor of Osun, to suspend the foundation-laying ceremony of the state international airport as controversy continues to swirl around the relocation of the project to a new site.

Adeleke had inaugurated an inter-ministerial committee to revive the abandoned airport in 2023.

The governor said his administration discontinued the MKO Abiola international airport in Ido-Osun and relocated it to Ede — his hometown — because the old site was unsuitable for a full-fledged airport.

But the proposed relocation riled Ido-Osun locals who have determined to oppose the move.

On November 26, the community staged a protest, condemning the relocation plans as “nepotistic and undemocratic”.

In a petition to Keyamo, dated November 29, the Ido-Osun Youth Forum said it is unacceptable that the state government would consider moving the airport to Ede, “where a new airport would be less than 10 minutes away from the current location in Ido-Osun”.

The group said it is alarming that the government is pushing the agenda “without reasonable cause”.

“These actions are a misuse of public funds and a waste of taxpayers’ money, giving consideration to the fact that Ido-Osun already has the largest flat runway in Nigeria, which has been capable of handling various aviation needs,” the petition reads.

“Governor Ademola Adeleke’s decision to relocate the airport to his home town of Ede is not only politically driven but also economically wasteful.

“The Ido-Osun airport, with its established infrastructure and strategic position, holds far greater potential for the development of the State.

“Rather than investing in the unnecessary construction of a new airport in Ede, which would entail duplicating resources and creating Inefficiencies, we urge your office to focus on revitalizing and completing the Ido-Osun Airport as originally planned.”

‘RESCHEDULE GROUNDBREAKING CEREMONY TO A MUTUALLY AGREED DATE’

In a letter seen by TheCable, dated December 6 and signed by Emmanuel Meribole, permanent secretary of the ministry of aviation and aerospace development, the federal government asked Adeleke to suspend the groundbreaking event until the issue is resolved.

In the letter, titled, ‘Re: Invitation as a Special Guest of Honour at the Foundation Laying Ceremony of the Osun State International Airport’, the ministry said the airport is a federal project which has been included in its 2024 budget.

“I wish to refer to your letter Ref. No. 5.12/19/1/Vol.VI/188 dated 21st November 2024 on the above subject and to respectfully request Your Excellency to suspend the foundation laying ceremony of the Osun State International Airport until the issues regarding the petitions over the existing airstrip/airport are resolved and to harmonize the state’s efforts with that of the federal government,” the letter reads.

“Your Excellency may wish to note that the airstrip is a federal project that is captured in the Ministry’s 2024 Appropriation. We also note that you have made arrangements to expand the airstrip to an international airport.

“In addition, there is a petition indicating there is an existing airstrip where funds have been expended and the need to use the site for the present airstrip instead of a new site.

“The federal government is mandated to ensure judicious use of funds to curtail wastage of resources. As this Airstrip Project is a collaboration between state and federal governments, we must be in sync before the project takes off.

“Accordingly, Your Excellency is respectfully requested to reschedule the foundation laying ceremony of the Osun State Airport pending the resolution of the petitions and selection of a mutually agreed date.”

The Central Bank of Nigeria (CBN) has denied the sales of foreign exchange (FX) to eligible bureau de change (BDC) operators at N1,301 per dollar.

In a post on X on Tuesday, CBN clarified that the circular did not originate from the bank.

According to the fake circular, all BDCs are allowed to sell to eligible end-users at a margin not more than 1 percent above the purchase rate from CBN.

“Following the on-going reforms in the foreign exchange market, aimed at achieving an appropriate market determined exchange rate for the Naira, the Central Bank of Nigeria (CBN) has observed the continued price distortions at the retail end of the market, which is feeding into the parallel market and further widening the exchange rate premium,” the fake circular reads.

“To this end, the CBN has approved the sale of foreign exchange to eligible Bureau De Change (BDCs) to meet the demand for invisible transactions. The sum of $20,000 is to be sold to each BDC at the rate of N1.301/S-(representing the lower band rate of executed spot transactions at NAFEM for the previous trading day, as at today, December 10, 2024

“All BDCs are allowed to sell to end-users at a margin NOT MORE THAN one percent (1%) above the purchase rate from CBN.

“All eligible BDCs are directed to make the Naira payment to the designated CBN Foreign Currency Deposit Naira Accounts and submit confirmation of payment, with other necessary documentations for disbursement at the appropriate CBN Branches ABUJA, AWKA, LAGOS and KANO)”

However, the financial regulator said the information is misleading and not affiliated with the CBN.

On September 6, CBN approved the sale of dollars to bureau de change operators at N1,580/$.