Nigerian independent oil and gas company Seplat Energy has reached an agreement with American multinational firm ExxonMobil to acquire the company’s subsidiary, Mobil Producing Nigeria Unlimited, and its business operations in a $1.2 billion deal.

Seplat Energy will acquire the company’s 40% stake in four oil mining licenses comprising over 90 shallow-water and onshore platforms and 300 producing wells. Seplat Energy will also acquire one of the largest export facilities in Nigeria, the Qua Iboe terminal and natural gas recovery plants at EAP and Oslo.

The acquisition will create one of Nigeria’s largest independent energy firms on the stock exchange and increase Seplat Energy’s 2P oil and gas reserves by 170% to 650MMbbl and by 14% to 1,712 Bscf, respectively. The deal also increases Seplat Energy’s production capacity by 186%.

Mobil Producing Nigeria Unlimited will remain with its deepwater projects.

The transaction is the first deal to be announced in Nigeria after the enactment of the Petroleum Industry Act.

Liam Mallon, president, ExxonMobil Upstream Oil and Gas, said: “This sale will allow us to prioritize competitively advantaged investments in our strategic assets, and it supports the Nigerian government’s efforts to grow its oil and gas operations.”

Roger Brown, CEO of Seplat Energy, added: “The acquisition is a perfect fit with our strategy to build a sustainable business and deliver energy transition in Nigeria. Our financial strength has enabled us to attract high quality local and international capital providers to fund this transaction without diluting our existing shareholders and reflects our deliberate approach to capital allocation.”