Nigerian energy company Seplat Energy Plc has finalized its acquisition of ExxonMobil's onshore oil and gas assets in Nigeria, marking a significant milestone in the country's energy landscape. The deal, valued at $800 million, is expected to double Seplat's production capacity and significantly expand its portfolio.

The acquisition, which was initially signed in February 2022, received approval from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in October. Seplat paid $800 million of the total purchase price this week, adding to an initial $128 million paid when the agreement was signed. The company has deferred $257.5 million of the transaction to December 2025 to account for decommissioning, abandonment, and joint venture costs.

The deal is seen as a strategic move by Seplat to leverage the exit of foreign companies from Africa's largest oil producer. The acquisition will enable Seplat to reactivate hundreds of dormant oil wells in Nigeria, significantly boosting the country's oil output. According to Seplat's CEO Roger Brown, the company plans to increase daily oil output from 71,000 barrels to over 200,000 barrels, although no specific timeline has been provided.

The enlarged company will have equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; five gas processing facilities; and three export terminals. The acquisition is expected to create Nigeria's leading independent energy company, with Seplat considering the deal a financially sound move due to favourable costs and anticipated returns.

The deal is also seen as a positive development for Nigeria's energy sector, which has been impacted by the exit of foreign companies in recent years. The acquisition is expected to boost the country's oil production and contribute to its economic growth.

Seplat Energy Plc is listed in Lagos and London and has been expanding its operations in Nigeria's energy sector. The company's acquisition of ExxonMobil's assets is a significant step in its growth strategy, and it is expected to have a positive impact on the country's energy landscape.

In conclusion, Seplat Energy Plc's acquisition of ExxonMobil's Nigerian assets is a significant development in the country's energy sector. The deal is expected to boost oil production, create Nigeria's leading independent energy company, and contribute to the country's economic growth. As the energy landscape continues to evolve, this acquisition is likely to have a lasting impact on Nigeria's energy sector.