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Key Points
- Seplat's growth mirrors global oil majors reducing operations in Nigeria's onshore and shallow water sectors amid environmental and output concerns.
- The company is focused on enhancing production to create long-term value for stakeholders while addressing Nigeria's energy demands.
- Seplat aims to improve operational efficiency and forge strategic partnerships to bolster its growth and Nigeria's energy security.
Seplat Energy, co-founded by Nigerian energy tycoon Austin Avuru, has unveiled plans to increase its crude oil output within the next six months. The leading energy group is moving swiftly to seize the opportunities created by ExxonMobil’s exit from Nigeria’s onshore oil sector, a move that is expected to reshape the country's energy landscape.
Seplat’s Chief Financial Officer, Eleanor Adaralegbe, revealed that the company plans to raise production from its current 50,000 barrels per day (bpd) to 120,000 bpd. This strategy is centered around maximizing underutilized assets that, according to Adaralegbe, have received "very minimal investment" in recent years.
Chief Executive Officer Roger Brown emphasized Seplat’s eagerness to collaborate with the Nigerian National Petroleum Company (NNPC), aligning with President Bola Tinubu’s initiative to increase oil production and enhance foreign exchange inflows.
Strategic partnership with NNPC
Seplat’s operations now account for 16 percent of Nigeria’s total oil production, a significant achievement that has been made possible through its co-management of assets with the state-owned NNPC, as outlined in Nigeria’s Petroleum Industry Act.
“We have no concerns working with NNPC,” Brown stated, noting that President Tinubu’s administration is driving reforms aimed at boosting oil revenue and stabilizing the naira.
Brown also emphasized the transformative role of the ExxonMobil acquisition in reinforcing Seplat's position as a dominant player in the region. “This is a game-changer, not just for Seplat but for the Nigerian energy sector,” he said.
Landmark ExxonMobil deal
Seplat, co-founded by Austin Avuru and Ambrosie Orjiako, has strengthened its position in Nigeria’s energy sector with the $800 million acquisition of ExxonMobil’s assets, completed in December after a two-year regulatory delay.
The deal, approved by the Nigerian Federal Government, adds 11 onshore oil blocks, 48 oil and gas fields, three export terminals, and five gas processing facilities to Seplat’s portfolio.
The acquisition highlights Seplat’s commitment to enhancing Nigeria’s energy infrastructure while boosting investor confidence. “This expansion not only strengthens our operational capacity but also positions us for sustainable growth in a challenging market,” Brown noted.
Global context and strategic outlook
Seplat’s growth aligns with a broader trend of international oil majors exiting Nigeria’s onshore and shallow water sectors. Companies like ExxonMobil, Eni, Equinor, and Addax Petroleum have scaled back operations due to environmental challenges and declining output.
As Seplat ramps up production, it aims to deliver long-term value to stakeholders while addressing Nigeria’s energy needs. The company’s operational efficiency and strategic partnerships are poised to shape the future of the country’s oil and gas industry.
