Seplat Energy has announced plans to invest up to $320 million in 2024, focusing on drilling new wells and upgrading infrastructure as part of its strategy to boost oil production.
This follows Seplat’s acquisition of Exxon Mobil’s Nigerian assets, with the company aiming to more than double its output to 140,000 barrels per day (bpd).
In October 2023, Seplat obtained government approval for a 40% stake in four oil mining leases, as well as key infrastructure such as the Qua Iboe export terminal.
The acquisition also included a 51% stake in the Bonny River natural gas liquids recovery plant, previously owned by Mobil Producing Nigeria Unlimited, Exxon’s local subsidiary.
This strategic acquisition is expected to significantly contribute to Seplat’s production expansion.
Following the integration of ExxonMobil’s former assets, Seplat plans to increase its onshore and shallow water oil output from an average of 48,618 bpd in 2023 to as much as 140,000 bpd.
Seplat’s financial performance for the year showed significant growth, with a profit before tax of $379.4 million, a sharp increase from $191 million in 2023.
Revenue rose by 5% year-over-year, totaling $1.116 billion, while year-end cash stood at $469.9 million. However, the company closed the year with a net debt of $898 million, reflecting its ongoing investments and expansion plans.
International oil companies have reduced their onshore and shallow-water production in Nigeria due to challenges such as sabotage, oil theft, and disputes with local communities over environmental concerns and leaks.
These issues have led to increased operational risks and financial losses, prompting several companies to divest from these assets.
In response, Seplat Energy is planning to reactivate hundreds of dormant oil wells and drill 13 new onshore wells in 2024.
These efforts are part of Seplat’s strategy to boost production and mitigate the impact of Nigeria’s challenging operating environment.
Seplat is also set to complete the ANOH gas plant, a major project that aims to increase domestic gas supply and support Nigeria’s energy transition efforts.
With these initiatives, Seplat is positioning itself as a key player in the country’s energy sector, contributing to both oil production and Nigeria’s broader energy goals.
