By Alex MacDonald
LONDON--Seplat Petroleum Development Co. PLC (SEPLAT.LA) has
resumed talks for a potential acquisition in Nigeria's Niger Delta,
agreeing with the sellers to set aside a smaller pool of funds
ahead of a possible deal amid the sharp recent fall in oil
prices.
The U.K. and Nigeria-listed company, co-founded by Nigerian
financier A.B.C Orjiakor, is part of a consoritum seeking to buy
the asset from oil and gas majors operating in the region, a person
familiar with the matter said.
The company's stock price surged on the news, rising 7.4% in
London to 116 pence, giving Seplat a market capitalization of
GBP642 million or $987 million.
Seplat, whose shareholders include France's Etablissments Maurel
et Prom SA (MAU.FR), said it can't disclose the name of the asset,
the seller, or the consortium members due to confidentiality
clauses signed as part of the deal negotiations.
Some of the major companies operating in the region include
Royal Dutch Shell PLC (RDSB.LN), Chevron Corp. (CVX),
ConocoPhillips (COP), Exxon Mobil Corp. (XOM), Total S.A. (TOT) and
ENI S.p.A. (ENI.MI).
Seplat said it has now set aside $74 million, made up of a
returnable deposit with the vendors and money deposited in an
escrow account, compared with $453 million set aside last year as
its share of the consortium's pre-deal commitments. The company
said it now has access to $368 million in cash that was previously
held in an escrow account.
-Write to Alex MacDonald at alex.macdonald@wsj.com
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