Seplat Energy Rises by 10% after ExxonMobil Deal Notice

Seplat Energy Plc’s market value increased by about 10% as the approval of the ExxonMobil deal boosted equities investors’ sentiments on the Nigerian Exchange (NGX) trading platform on Monday.

The energy company hit a fresh high (the best price over the last 12 months) due to investors rush to take positions on expectation that the company’s performance will improve after integration of the new onshore oil assets.

Explaining what drove the uptrend, stockbrokers said news of the conclusion of the sale of Exxon’s onshore oil and gas assets in a deal worth $1.3 billion to SEPLAT was most likely the primary driver of huge volume traded in the equities market.

Data from the Nigerian Exchange trading platform showed that Seplat Energy share price increased by 9.99% on Monday to N5,738.20 kobo from N5217.20 kobo at the beginning of the trading session this week.

The price surge lifted the equities market valuation of the energy company to N3.376 trillion as investors bet in anticipation of future earnings improvements. On Monday, the Nigerian government announced it has approved the sale of ExxonMobil to Seplat Energy more than two years after the $1.28 billion deal was first agreed.

The sale had been under scrutiny as it awaited regulatory approval since it was first announced in February 2022.

Under the deal, Seplat will own 40% of four oil mining leases and associated infrastructure. This includes the Qua Iboe export terminal and 51% of Bonny River natural gas liquids recovery plant previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local unit

Oil majors operating in Nigeria – Africa’s largest oil exporter – have been retreating from onshore operations hampered by theft and sabotage, opting to focus future investments on newer and more lucrative deep offshore fields.

In July, the NUPRC approved the sale of onshore assets by Eni, which opened a new tab local unit to Oando. #Seplat Energy Rises by 10% after ExxonMobil Deal Notice #Seplat Energy Rises by 10% after ExxonMobil Deal Notice  FX Stability: CBN Sells 122.671m Dollars to 46 Authorised Dealers