By Freya Berry and Joe Brock
LONDON/ABUJA, March 11 (Reuters) - Nigerian oil companySeplat plans to raise at least $500 million by selling shares onthe London and Lagos stock exchanges to pay down debt and snapup assets being sold by energy majors in Africa's largest oilproducing nation, the company said.
Seplat, in which France's Maurel & Prom andSwiss-based trader Mercuria both hold minority stakes, is amongconsortia short-listed to bid for some $3 billion in assetsbeing sold by Shell and others, sources said.
Competition is stiff for the blocks in the Niger Delta,which holds a large portion of Nigeria's 37 billion barrels ofreserves. The oil is high-quality, relatively easy to drill andNigerian firms say they can better handle security challengesthat have prompted the majors to divest.
Commodity trader Glencore, involved in marketingNigeria's crude oil and importing its fuel for decades, is amongthe companies vying to enter its upstream sector.
The cash Seplat will raise puts it in a strong position asit prepares for acquisitions in shallow-water areas, one sectorbanker said, because foreign companies must partner up withNigerians in order to bid.
"The global offer proceeds will allow us to furtherimplement our business strategy, which includes acquiring newassets," A.B.C Orjiako, Seplat's chairman and co-founder, saidon Tuesday.
Shell is selling its 30 percent stake in four oilblocks, with France's Total and Italy's Eni also set to profit from sales of their 10 percent and 5 percentstakes. The Nigerian National Petroleum Corporation (NNPC) ownsthe remaining 55 percent.
Shell is also selling the 97-km (60-mile) Nembe Creek oilpipeline, which has been regularly attacked by oil thieves.
The London-listed major has already made $1.8 billion fromasset sales in Nigeria since 2010 as several oil majors divestedonshore blocks due to oil theft and a government drive toincrease local ownership.
GLENCORE RIVAL
Founded in 2009 by wealthy Nigerian businessmen Orjiako andAustin Avuru, Seplat pumps about 60,000 barrels per day of oilfrom three blocks it operates in the Niger Delta.
It bought a 45 percent stake in the blocks from Shell, Totaland Eni in 2010. NNPC owns the rest.
Seplat is also near completing a deal to buy a Niger Deltaoil block from Chevron, but a legal dispute between theU.S. oil major and another Nigerian firm threatens to delay theagreement, sources close to the process say.
Cash from the listing could go partly towards the Chevrondeal, the sources said.
A source close to Maurel & Prom said Seplat also planned touse the cash to fund a bid for Shell's OML 29 oil block.
OML 29 is the most coveted asset of the four being sold. Itsoutput has peaked at 62,000 bpd of oil and 40 scf/d of gas andholds reserves of 2.2 billion barrels of oil equivalent (boe),according to a Shell prospectus seen by Reuters.
It is likely to fetch $1-$1.5 billion, industry sourcessay.[ID: nL5N0IQ2UD]
One of Seplat's directors, Basil Omiyi, was previously Shell's Nigeria country head, but the firm is likely to facecompetition from cash-rich Glencore.
Glencore has linked up with Nigerian traders Taleveras andAiteo for its bid on OML 29, say two oil industry sources.
These two firms are involved in Nigeria's crude-for-productswap deals.
A source close to Maurel said Seplat's intention was tofloat in June and its equity value was about $1 billion,suggesting about half the company would be sold in the IPO.
BNP Paribas and Standard Bank are joint globalco-ordinators, while Renaissance Capital, Citigroup and RBCEurope are joint bookrunners on the flotation.
