Seplat Energy Plc has launched an ambitious plan to revive hundreds of dormant oil wells in Nigeria following its $1.28 billion acquisition of ExxonMobil’s onshore oil and gas assets in Africa’s largest oil-producing nation.
Currently, only about 200 of Seplat’s 600 oil wells are operational. However, with the addition of ExxonMobil’s assets, Seplat aims to reactivate hundreds of idle wells, significantly boosting production.
The company projects an increase in output from approximately 50,000 barrels per day (bpd) to 120,000 bpd within six months, according to Chief Financial Officer Eleanor Adaralegbe, who shared the update in an interview with the Financial Times.
Seplat finalized its purchase of Mobil Producing Nigeria Unlimited in December, overcoming a two-year delay for regulatory approval from the Nigerian Upstream Petroleum Regulatory Commission.
The acquisition positions Seplat as one of Nigeria’s largest domestic producers, with an extensive asset portfolio that includes 11 onshore oil blocks, 48 oil and gas fields, three export terminals, and five gas processing facilities.
Adaralegbe highlighted the lack of investment in these assets under previous management, emphasizing Seplat’s commitment to growth.
CEO Roger Brown affirmed that the company, in collaboration with the state-owned Nigerian National Petroleum Company (NNPC), aims to enhance Nigeria’s oil production.
Brown noted President Bola Tinubu’s focus on increasing oil output to bolster foreign exchange reserves and stabilize the currency.
“We have no concerns working with NNPC,” Brown said. “There’s been a massive change with President Tinubu, realizing that production is key to bringing dollars into the country.”
Chief Operating Officer Samson Ezugworie emphasized the need for significant investments to restore the production potential of Nigeria’s idle wells. “We have over 600 wells drilled, and barely 200 of them are producing,” he stated.
Seplat’s acquisition comes as international oil companies continue to exit Nigeria’s onshore and shallow-water sectors, which have faced environmental challenges and declining production.
By rejuvenating these assets, Seplat Energy aims to reinvigorate Nigeria’s oil industry and play a pivotal role in its economic recovery.
