Seplat Restores 49 Idle Wells, Targets 50 More as Offshore Output Surges After ExxonMobil Asset Deal
Seplat Energy Plc has restored 49 previously idle wells to production following its US$1.28 billion acquisition of onshore and shallow-water assets from ExxonMobil, adding significant new capacity as part of a broader offshore turnaround strategy.
The company confirmed in its latest audited financial results that the well restoration campaign was a key driver of offshore growth in 2025.
Cost-Efficient Production Gains
The restoration programme added approximately 48,600 barrels per day (bpd) in gross production capacity at a total cost of about US$60 million underscoring its capital efficiency relative to drilling new wells.
Seplat now plans to expand the initiative, targeting the restart of an additional 50 wells through 2026 as it enters the second phase of the programme.
Management cautioned, however, that incremental production gains per well are likely to moderate, as the highest-impact idle wells have already been prioritised.
Chief Executive Officer Roger Brown said the strategy forms part of a wider effort to revitalise assets that had seen limited upstream investment under previous ownership. According to Brown, renewed offshore spending has enhanced operational reliability and unlocked additional production capacity.
Operational Performance and Yoho Recovery
The well restoration campaign contributed to stronger offshore performance in 2025, with average daily working interest production reaching 76,023 barrels of oil equivalent (boe/d), representing approximately 9% year-on-year growth on a pro-forma basis.
The company noted that gains were achieved despite planned maintenance activities and a third-quarter fire incident at the Yoho platform, which resulted in a temporary production outage.
The Yoho facility remains offline but is expected to resume operations in the second quarter of 2026.
Seplat estimates that bringing the platform back online could restore around 20,000 bpd, providing additional support to output growth alongside the next phase of the idle well programme.
Strong Financial Momentum
The production turnaround coincided with a marked improvement in financial performance.
Revenue rose 144% year-on-year to US$2.7 billion in 2025, despite a 12% decline in global oil prices.
Adjusted EBITDA reached US$1.27 billion, reflecting a 47% margin, while operating cash flow totalled US$1.17 billion.
Net debt declined to US$673 million, equivalent to 0.5x net debt-to-EBITDA, signalling strengthened balance sheet resilience.
Total group production increased 148% to 131,506 boe/d, reflecting the first full year of consolidated operations following the acquisition of Mobil Producing Nigeria Unlimited (MPNU).
The idle well revival programme is expected to remain a central pillar of Seplat’s capital allocation strategy as it seeks to maximise returns from its expanded offshore portfolio while managing disciplined growth.
