Heirs Energies has successfully acquired a 20.07% stake in Seplat Energy through a $500 million deal, positioning itself as the largest shareholder
Maurel & Prom’s Seplat stake is purchased by Tony Elumelu’s Heirs Energies in a historic $500 million energy deal financed by Africa.
In a deal for over $500 million, Nigerian tycoon Tony Elumelu’s Heirs Energies Limited purchased a 20.07 percent equity holding in Seplat Energy Plc from French energy company Maurel & Prom, making it the company’s largest stakeholder.
The acquisition of the whole Maurel & Prom stake in Seplat Energy, which was backed by two significant African financial institutions, Afreximbank and the Africa Finance Corporation (AFC), increases indigenous involvement in Nigeria’s energy sector.
The agreement was made just one week after Heirs Energies obtained a $750 million credit facility from Afreximbank to support its continuing operations and aspirations for expansion, putting the business in a position to carry out significant transactions along the energy value chain.
Heirs Energies strengthens its position in Nigeria’s oil and gas industry with the closing of the deal. At the moment, Heirs Energies produces about 70 kboepd, whilst Seplat Energy produces about 286 kboepd.
Approximately 356 kboepd is the total daily production capacity of both firms, which includes approximately 490 million cubic feet of gas per day (mmcfd) and 266 thousand barrels of oil per day (kbopd).
Additionally, Tony Elumelu’s influence in Nigeria’s oil sector is strengthened by the acquisition. About 17% of Nigeria’s electricity supply comes from his power generation companies, Transcorp Power in Delta State and TransAfam Power in Rivers State. Meanwhile, the Abuja Electricity Distribution Company (AEDC) serves a 126,000 square kilometer region that includes the states of Abuja, Kogi, Nasarawa, and Niger.
In keeping with his long-held conviction that “No One But Us Will Fix Africa,” Elumelu, a well-known proponent of African-led development, has repeatedly emphasized the necessity for Africans to assume control of vital assets.
