Seplat Energy Plc has taken a bold step to reinvigorate Nigeria’s oil industry by reactivating hundreds of dormant oil wells, following its acquisition of ExxonMobil’s onshore oil and gas assets in the country.
This acquisition marks a pivotal moment, leveraging the exit of international oil companies from Africa’s largest oil producer to bolster local operations.
In October, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved the $1.19 billion deal, over two years after it was initially signed in February 2022.
According to Reuters, Seplat recently paid $800 million of the total purchase price, adding to the $128 million advanced in 2022. The remaining $257.5 million has been deferred to December 2025 to cover decommissioning, abandonment, and joint venture costs.
Seplat, listed in both Lagos and London, regards the acquisition as a strategically sound investment, citing favorable costs and promising returns.
The company anticipates that the deal will double its production capacity and solidify its position as Nigeria’s leading independent energy firm.
The expanded entity now holds equity in 11 onshore and shallow-water blocks in Nigeria, comprising 48 producing oil and gas fields, five gas processing facilities, and three export terminals.
CEO Roger Brown revealed plans to increase production from the current 71,000 barrels of oil equivalent per day (boepd) to over 200,000 boepd, though no specific timeline was provided for this ambitious target.
By revitalizing dormant wells and enhancing output, Seplat Energy is set to play a key role in Nigeria’s energy sector, driving local growth and sustainability in an era of transitioning oil markets.
