London – Nigerian indigenous oil producing company Seplat Petroleum Tuesday announced plans to raise $500 million via a public offering of its shares on the Lagos and London Stock Exchanges to fund the acquisition of new onshore and offshore assets to be sold by major oil companies in Nigeria.
Founded in 2009, Seplat will become the first Nigerian company to dual list on both the London Stock Exchange and Nigerian Stock Exchange in its bid to raise at least $500 million (361 million euros), the company said in a statement.
Seplat, in which French independent energy firm Maurel & Prom is a partner, currently operates three Niger Delta onshore oil fields, Oil Mining Leases 4, 38 and 41, acquired from Shell in 2011 with output averaging 51,300 b/d as of the end of 2013, according to company data.
BNP Paribas and Standard Bank, would act as joint global coordinators for the listing, while Renaissance Securities of Cyprus, Citigroup Global Markets Ltd. and RBC Europe Ltd, were appointed as joint book runners, Seplat said.
Seplat said of the $500 million to be raised, $48million would be used to repay outstanding loans while the balance would go into funding the acquisition of new assets mainly those to be divested by foreign oil majors.
Seplat is the preferred bidder for the 40% stake Chevron is selling in Niger Delta OMLs 52, 53 and 55, which, sources close to the transactions say, are worth over $600million. Seplats is also eying new oil blocks and assets Shell intends to sell, sources told Nogtec.
“Our target is to grow gross operated production of oil and condensate to 85,000 b/d by the end of 2016, with at least 100% annual reserves replacement from our existing assets,” Seplat Chairman Bryant Orjiako, was quoted saying in the statement.
“We are confident that Seplat will continue to succeed and flourish as a leading Nigerian oil and gas operating company with a proven track record for delivering value to its investors, while fostering indigenous participation in the Nigerian oil and gas industry,” he added in the statement.