Nigerian oil firm Seplat Petroleum completes the acquisition of Eland oil and gas company to expand its production

Seplat workers on site (shipsandports)
  • Seplat acquires Scotland's incorporated oil and gas firm, Eland, for $484 million.
  • Austin Avuru, Seplat's Chief Executive Officer, says the deal will further enhance the indigenous company’s footprint in Nigeria. 
  • With the completion of the deal, the London Stock Exchange will cancel the shares of Eland on December 18th, 2019.

Seplat Petroleum Development Company Plc has completed the acquisition of Eland Oil and Gas in a scheme that cemented the entire transfer of entire shares of Scotland's incorporated oil and gas firm.

In October 2019, the boards of Seplat and Eland announced that they had reached agreement on the terms of a recommended cash acquisition by Seplat of the entire issued and to be issued ordinary share capital of Eland.

Commenting on the acquisition, Austin Avuru, Seplat's Chief Executive Officer said, "We are delighted to complete the acquisition of Eland, which further enhances Seplat's footprint in Nigeria and provides opportunities for enhanced scale, diversification and growth.

“We welcome our new colleagues and Nigerian partners as we look forward to working together in this exciting phase of our development."

A a result of the deal, trading of the Eland shares on AIM securities - a market operated by the London Stock Exchange - will be canceled with effect from December 18th, 2019.

Eland has two licences - OML 40 and Ubima-1 well. While its core asset OML 40 is in Warri, Delta, Ubima is located in Ikwerre, Rivers State.

According to reports, the transaction worth £382 million (about $484 million in October 2019) with an expectation of boosting Seplat’s production and reserves.

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