Seplat Energy Plc · LSE:SEPL
Seplat Energy — Merger or Acquisition (February 2022)
25 slides from Seplat Energy's merger presentation, Feb 25, 2022
Slide 1: Seplat Energy Acquiring ExxonMobil's Shallow Water Business in Nigeria
25 FEBRUARY 2022 A NIGERIAN ENERGY CHAMPION SEPLAT ENERGY ACQUIRING EXXONMOBIL’S SHALLOW WATER BUSINESS IN NIGERIA Reliable energy, limitless potential
Slide 2: Acquisition Summary
ACQUISITION SUMMARY Seplat Energy to acquire Mobil Producing Nigeria Unlimited (MPNU) from Exxon Mobil Corporation, Delaware (ExxonMobil) ▪ MPNU is the entire operated offshore shallow water business ATTRACTIVE ACQUISITION METRICS of ExxonMobil in Nigeria ▪ Purchase price of $1,283 million plus up t
Slide 3: A Transformational Acquisition
A TRANSFORMATIONAL ACQUISITION A strategic acquisition which significantly enhances Seplat Energy’s portfolio STRATEGIC RATIONALE ▪ Adds established high-quality, operated assets delivering strong cashflow from existing US$-based production ▪ Upside potential from extensive portfolio of low-cost and
Slide 4: Increases Scale of Seplat Energy
INCREASES SCALE OF SEPLAT ENERGY MPNU assets significantly enlarge group’s production and reserves (pro forma 2020) 51 + 95 kboepd W.I. Production 146 kboepd kboepd 241 + 409 MMbbl W.I. 2P Liquids Reserves 650 MMbbl MMbbl Seplat Enlarged Energy 2020 1,501 + 211 Bscf W.I. 2P Gas Reserves 1,712 Group
Slide 5: Reinforces Energy Leadership
REINFORCES ENERGY LEADERSHIP Creates one of the largest independent energy companies Significant gas resources not considered in 2P reserves. Requires an approved development plan. 2P RESERVES (MMBOE) (YEAR-END 2020)(1) Seplat Energy is already the largest indigenous independent 1,600 1,513 company
Slide 6: Financing Fully Committed at Signing
FINANCING FULLY COMMITTED AT SIGNING Funding structure committed by a syndicate of Nigerian and African regional banks, and energy and commodity traders ▪ Debt funding is at the level of the target Proposed Funding Structure and non-recourse to Seplat Energy plc Debt ▪ Equity to be funded from exist
Slide 7: Potential to Develop 7+ Tscf Gross (2.9 Tscf W.I.)
POTENTIAL TO DEVELOP 7+ TSCF GROSS (2.9 TSCF W.I.) Realistic prospect for commercialisation of billion barrel equivalent resource (gross) Oso Area 2,309 Bscf + 528 Bscf 2P (gross) 924 Bscf + 211 Bscf 2P (W.I.) ▪ Significant discovered 211 W.I. gas resources with 480 W.I. 528 existing wells and infra
Slide 8: Dedicated Export Capabilities
DEDICATED EXPORT CAPABILITIES MPNU production is monetised through secure owner-operated infrastructure Offshore infrastructure offers dedicated and secure export 2020 LIQUIDS EXPORT BY ROUTE (KBOPD)(1) routes with strong track record of operating uptime of 86% (2011-2020) and minimal reconciliation
Slide 9: Highly Experienced Nigerian Skill Base
HIGHLY EXPERIENCED NIGERIAN SKILL BASE MPNU adds high-quality personnel to Seplat Energy’s operational capability EMPLOYEE OVERVIEW ALMOST ENTIRELY NIGERIAN WORKFORCE ▪ Acquiring MPNU as a going concern 2% ▪ Circa. 1,000 staff plus contractor workforce Nigerian of circa. 500 people Other ~1,000 ▪ St
Slide 10: Supporting and Driving Our Strategy
SUPPORTING AND DRIVING OUR STRATEGY Acquisition is first milestone in delivering strategic goals outlined in 2021 Build a sustainable Deliver business transition Social Development Upstream ~1,000 mostly Nigerian staff & ~500 contractors, Adds significant, high-quality offshore reserves strong commu
Slide 11: Seplat Energy – A Nigerian Energy Champion
SEPLAT ENERGY – A NIGERIAN ENERGY CHAMPION The acquisition of MPNU fits our strategy and transition agenda, and supports the Nigerian Government’s energy objectives Reinforces position as Nigerian energy leader, capable of attracting multi-billion US$ of local and foreign direct investment to develo
Slide 12: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The following applies to the information preceding this slide, and you are therefore advised to carefully read the statements below before reading, accessing or making any other use of this presentation. Disclaimer The information contained in this document has been p
Slide 13: Appendix: Asset Overviews and Additional Information
APPENDIX ASSET OVERVIEWS AND ADDITIONAL INFORMATION Reliable energy, limitless potential 13 SEPLAT ENERGY ACQUISITION OF MPNU – FEBRUARY 2022
Slide 14: Pursuing the Nigerian Opportunity
PURSUING THE NIGERIAN OPPORTUNITY NIGERIA’S ABUNDANT ENERGY RESOURCES bbl liquids ▪ 40 years reserves remaining 37bn without additions ▪ 1.6 million bopd average daily production in 2021 POPULATION ECONOMY Source: NNPC ▪ Current production of 8 Bscfd Tscf gas ▪ could power 8 GW ▪ Africa’s largest po
Slide 15: Our Beliefs About the Future
OUR BELIEFS ABOUT THE FUTURE The greatest business opportunity ahead of us is to supply the right mix of energy to support Nigeria’s growth Seplat Energy is committed to making a positive social impact and contributing to Nigeria’s achievement of the United Nations’ Sustainable Development Goals Hyd
Slide 16: Simplified Ownership Structure
SIMPLIFIED OWNERSHSIP STRUCTURE NIGERIAN PETROLEUM NIGERIAN NATIONAL DEVELOPMENT COMPANY PETROLEUM CORPORATION (NPDC) (NNPC) 60% Acquired Business Existing Assets(4) MOBIL PRODUCING NIGERIA Oben / Amukpe / UNLIMITED 21 kboepd + OML 4, 38, 41 Okporhuru / Ovhor / (MPNU) 101 MMscfd Orogho / Sapele Oper
Slide 17: Historical MPNU Production
HISTORICAL MPNU PRODUCTION HISTORIC PRODUCTION (BOEPD)(1) 300,000 250,000 200,000 150,000 100,000 50,000 0 Reliable energy, limitless potential (1) Net to MNPU’s working interest 17 SEPLAT ENERGY ACQUISITION OF MPNU - FEBRUARY 2022
Slide 18: Combined Portfolio Summary
COMBINED PORTFOLIO SUMMARY 18 SEPLAT ENERGY ACQUISITION OF MPNU - FEBRUARY 2022 Reliable energy, limitless potential
Slide 19: OML 67 Overview
OML 67 OVERVIEW OML 67 includes key fields Ubit & Edop DESCRIPTION OF THE ASSET ASSET MAP ▪ OML 67, one of the largest blocks in the Niger Delta, came onstream in 1970 and currently utilises 5 production platforms ▪ Crude is gathered at the Idoho production platform and is then sent to the onshore Q
Slide 20: OML 68 Overview
OML 68 OVERVIEW OML 68 includes key field Idoho DESCRIPTION OF THE ASSET ASSET MAP ▪ OML 68 came onstream in 1970 and utilises the single Idoho production platform ▪ OML 68 crude joins OML 67 crude at the Idoho production platform and is then sent to the onshore Qua Iboe Terminal for processing and
Slide 21: OML 70 Overview
OML 70 OVERVIEW OML 70 includes key fields Oso & Usari DESCRIPTION OF THE ASSET ASSET MAP ▪ OML 70 came onstream in 1970 and utilises 4 production platforms; also includes a 9.6% non-operated interest in the A/K field which is unitised across OML 70 and OML 99 ▪ Crude is gathered at the Oso producti
Slide 22: OML 104 Overview
OML 104 OVERVIEW OML 104 includes key fields Yoho & Awawa DESCRIPTION OF THE ASSET ASSET MAP ▪ OML 104 came onstream in 2002 and utilises the single Yoho production platform ▪ Crude is exported locally using a floating storage offloading (FSO) vessel ▪ Future opportunities include identified infills
Slide 23: NGL Extraction Overview
NGL EXTRACTION OVERVIEW Maximising value via NGL extraction performed offshore and onshore DESCRIPTION OF THE ASSET ASSET MAP ▪ NGL extraction from wet gas began in 1998 from the Oso NGL Project (OML 70), with the East Area Project (OML 67) coming online in 2002 ▪ NGLs sent to the onshore Bonny Rive
Slide 24: Fiscal Terms and PIA Update
FISCAL TERMS AND PIA UPDATE Passing of the Petroleum Industry Bill into an Act (the PIA) is a game changer for the energy industry, and Nigeria as a nation COMMUNITY, KEY FISCAL INCENTIVES AND ENVIRONMENT AND ROYALTIES TAXES CHANGES DEDUCTIONS ABANDONMENT ▪ Companies have the option ▪ Petroleum Host
Slide 25: Contact Us
CONTACT US Lagos London Reliable energy, limitless potential 25 SEPLAT ENERGY ACQUISITION OF MPNU – FEBRUARY 2022
Seplat Energy — Merger or Acquisition (February 2022) on 6ix