Seplat acquires Chevron oil assets, OML 55 for N67bn

Seplat Petroleum Development Company Plc, Thursday, said it has acquired Chevron Nigeria Limited’s 40 per cent stake in ‎Oil Mining Lease 53 in the Niger Delta for $259.4 million, about N44.09 billion.

The company, in a statement to the international investing community, also stated that it has concluded negotiations to acquire 22.5 per cent interest in OML 55 for $132.2 billion, about N22.47 billion.
According to the statement, the company will be acquiring 56.25 per cent of Belemaoil Producing Limited, a Nigerian special purpose vehicle that has bought a 40 per cent interest in the producing OML 55, located in the swamp to coastal zone of south eastern Niger Delta.
“The Nigerian National Petroleum Corporation, NNPC, holds the remaining 60 per cent interest in OML 55, and Seplat’s effective working interest in OML 55 as a result of the acquisition is 22.50 per cent.
“Seplat is paying $132.2 million for its 22.5 per cent interest in OML 55, after adjustments. It has also advanced certain loans of $80.0 million to the other shareholders of Belemaoil to meet their share of investments and costs associated with Belemaoil,” Seplat said.
‎The company further stated that talks are underway to determine repayment terms for the initial deposit against the acquisition of $52.5 million that Belemaoil funded with bank debt, which may be added to the total amount loaned to Belemaoil by Seplat.
The company said, “Current gross production at OML 55 is 8,000 barrels of oil per day. Seplat has been designated operator of OML 55. The Company will also act as technical services provider to Belemaoil.
Seplat estimates net recoverable hydrocarbon volumes attributable to its 40 per cent working interest in OML 53 is 51 million barrels of oil and condensate and 611 billion square cubic feet of gas. Seplat has been designated operator of OML 53.‎”

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