A Nigerian oil company, Seplat Petroleum which bought Shell’s onshore assets in the Niger Delta has said that it is planning a dual listing on the Nigerian and London Stock Exchanges in order to raise $500 million (N80 billion) for expansion.
“The global offer proceeds will allow us to further implement our business strategy, which includes acquiring new assets,” Bryant Orjiako, Seplat’s chairman, said in a statement. “Seplat has a disciplined approach to acquiring new onshore and shallow-water assets in the Niger delta, which will be strictly adhered to.”
Bloomberg reports that Seplat bought a 45 percent interest in 2010 in three oil leases from Shell and was appointed the operator by the Nigerian oil industry authority. Seplat’s average crude output tripled after the acquisition, to more than 50,000 barrels a day in 2013 along with 99 million standard cubic feet of gas.
“Our target is to grow gross operated production of oil and condensate to 85,000 barrels per day by the end of 2016, with at least 100 percent annual reserves replacement from our existing assets,” Orjiako said.
Seplat has appointed BNP Paribas SA and Standard Bank Group Ltd. as joint co-ordinators and bookrunners, it said. Renaissance Securities Cyprus Ltd., Citigroup Inc. (C) and RBC Europe Ltd. will act as joint bookrunners while Stanbic IBTC Plc and Renaissance Securities Nigeria Ltd. were appointed as Nigerian joint issuing houses.
Seplat’s full-year revenue rose 41 percent to $880 million, it said in the statement. Operating profit rose 45 percent to $479 million during the same period.