Seplat Energy Plc has said that it is consolidating recent gains following its acquisition of Mobil Producing Nigeria Unlimited (MPNU), now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU). The acquisition has expanded the company’s production capacity and reserves. Integration of the new assets is progressing, with strategic investments underway to improve output and operational efficiency.
Chief Executive Officer, Roger Brown, said the SEPNU assets have strengthened Seplat’s position in Nigeria’s energy sector. “The increased reserves and production that the SEPNU assets add to Seplat Energy’s operations are significant. This is making us consolidate our position as the leader, and this is a significant responsibility of stewardship of Nigeria’s natural resources, which we do not take lightly,” he stated at the company’s 12th Annual General Meeting held in Lagos.
He explained that Seplat, which was previously a 100 per cent onshore operator, now derives approximately 70 per cent of its production from offshore operations, managing exports through three terminals: Qua Iboe, Bonny River, and the Yoho Floating Storage and Offloading (FSO) facility. These are supported by Natural Gas Liquids (NGL) plants at East Area Project (EAP) and Oso.
In addition, Brown announced the introduction of a new corporate culture framework aimed at aligning the enlarged workforce with the company’s objectives. “The company recently launched our culture framework in 2024, called SF-InPACT (Seplat First, Inclusivity & Respect, Performance-driven, Agility, Confidentiality and Trust), which was the result of extensive internal workshops and reviews,” he said.
Chairman of the Board, Udo Udoma, described 2024 as a year of strategic progress for Seplat. He confirmed that the MPNU acquisition, valued at $800 million, was funded through a combination of cash and debt, without diluting existing shareholder equity.
“Merging SEPNU with Seplat Energy has created a Nigerian energy powerhouse with pro-forma production of 118,000 barrels of oil equivalent per day and combined reserves of 886 million barrels, representing an 85 per cent increase in reserves,” Udoma said.
He added that the company intends to make further investments in both its onshore and offshore operations to sustain and increase production. “We plan to invest in both our onshore and SEPNU businesses to increase production in both divisions. We also plan to invest in maintenance and integrity activities to ensure the infrastructure will continue to support production well into the future,” he noted.
One of the key operational steps already underway is the phased restoration of more than 400 idle oil wells within the SEPNU asset base. According to Chief Operating Officer, Samson Ezugworie, “We have well over 400 idle wells in SEPNU at the moment, and we have well-worked budgets now safely restoring them. We also have integrity budgets, making sure that our asset integrity is very strong as we restore more of those idle wells.”
He added that the restoration will begin with the “easy and safe-to-restore conduits” and will continue into 2025.
Seplat also continues to develop its gas business. With current processing capacity approaching 2.5 billion standard cubic feet per day across its onshore and offshore facilities, Seplat is closely monitoring progress on the OB3 pipeline and expects the ANOH Gas Plant to commence full operations in the latter part of 2025.
In the social investment space, Seplat has expanded its interventions. In 2024, it launched the Youth Entrepreneurial Program (YEP), which provides training in renewable energy systems. Other key initiatives include the “Eye Can See” healthcare programme and various educational support schemes for teachers and students in its host communities.
On financials, Seplat recorded revenues of $1.116 billion for the 2024 fiscal year. Chief Financial Officer, Eleanor Adaralegbe, said the company’s strong performance supported increased shareholder returns. “We had a very strong year in 2024. So the board indeed approved a quarterly dividend for Q4 of 3.6 cents. But because the year was a really good year, there was then a special dividend of 3.3 cents that was also approved for the shareholders,” she said.
She added that this brought the total dividend declared for the year to 16.5 cents per share, made up of a core dividend of 13.2 cents and a special dividend of 3.3 cents, a 10 per cent increase compared to 2023.