Seplat Energy plans to invest up to $320 million this year in drilling new wells and upgrading infrastructure as part of its strategy to boost oil production.
- Seplat Energy plans to invest up to $320 million in drilling new wells and infrastructure upgrades.
- After acquiring Exxon Mobil’s Nigerian assets, the company aims to double its output to 140,000 barrels per day.
- The acquisition includes a 40% stake in oil mining leases and a 51% stake in a natural gas liquids recovery plant.
Following its acquisition of Exxon Mobil’s Nigerian assets, the company aims to more than double its output to as much as 140,000 barrels per day.
In October 2023, Seplat secured government approval to acquire a 40% stake in four oil mining leases, along with key infrastructure such as the Qua Iboe export terminal.
Additionally, the deal included a 51% stake in the Bonny River natural gas liquids recovery plant, which was previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local subsidiary, Reuters reported.
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This acquisition is expected to play a significant role in Seplat Energy’s production expansion, potentially increasing its onshore and shallow water oil output from an average of 48,618 barrels per day (bpd) last year to as much as 140,000 bpd. This growth comes after the integration of ExxonMobil’s former assets into Seplat’s portfolio.
Financially, the company reported a profit before tax of $379.4 million, marking a sharp increase from $191 million the previous year. Revenue grew by 5% year-over-year to $1.116 billion, while year-end cash at the bank stood at $469.9 million.
However, Seplat closed 2024 with a net debt of $898 million, reflecting its ongoing investments and expansion efforts.
International oil companies have significantly reduced their onshore and shallow-water oil production in Nigeria due to persistent issues, including sabotage, oil theft, and disputes with local communities over environmental concerns and leaks.
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This trend has led to increased operational risks and financial losses, prompting some firms to divest from these assets.
In response, Seplat Energy plans to reactivate hundreds of dormant oil wells and drill 13 new onshore wells this year as part of its strategy to enhance production.
Additionally, the company is set to complete the ANOH gas plant, a major project aimed at increasing domestic gas supply and supporting Nigeria’s energy transition efforts.
