Nigeria’s Seplat Energy Set to Drive Transformation through Offshore Production Increase
Nigeria’s oil and gas company Seplat Energy is on a mission to catalyze transformation in Nigeria by ramping up offshore oil and gas production by 2025.
Speaking at a recent industry event in Nigeria, Seplat Energy’s Chief Executive Officer, Roger Brown, reiterated the company’s unwavering commitment to leveraging the “very vast” opportunities present in the country to propel its development forward. Collaborating closely with the government, Seplat aims to boost oil and gas production in the national interest.
Brown emphasized that the company’s substantial gas resources within its asset portfolio present a significant opportunity to enhance Nigeria’s electricity generation capacity, thereby spearheading the country’s transformation and progress.
Following the successful acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil in December 2024, subsequently rebranded as Seplat Energy Producing Nigeria Unlimited (SEPNU), Seplat Energy now stands as one of the largest oil and gas producers in Nigeria.
The acquisition of ExxonMobil’s Nigerian business was initially announced by Seplat in November 2021 and confirmed in February 2022. After facing delays in the closing date, which was postponed twice, first in May 2023 and then a year later, the deal finally received approval from Nigeria’s Minister of Petroleum Resources in October 2024.
Seplat’s acquisition of MPNU includes a 40% operated interest in four offshore oil mining leases (OMLs): 67, 68, 70, and 104, a 9.6% non-operated interest in the Amenam-Kpono field, over 120 shallow water and offshore facilities, around 200 producing wells, and approximately 1,500 km of pipelines. The infrastructure encompasses the Qua Iboe terminal and the floating storage and offloading (FSO) unit Yoho, among others.
“The acquisition of these assets heralds a new era for Nigeria and its people. It presents an opportunity to foster growth and transformation in Nigeria, with Seplat Energy at the forefront of this pivotal development,” remarked Seplat’s CEO.
Commenting on the acquisition during the disclosure of the company’s 2024 annual results, Brown highlighted, “In the initial months following the acquisition, it has become evident that there is a substantial opportunity in the offshore shallow water, operating a closed-loop system from well-head production to hydrocarbon sales at the terminal.”
Seplat anticipates a rise in operating costs as it plans to escalate investments in operations and maintenance (O&M) activities across offshore assets. This includes a focus on reopening previously inactive wells in SEPNU and expediting subsurface work and contracting necessary to commence an infill drilling campaign.
The company intends to engage two barges to operate across the offshore license area starting from early 2Q 2025, with one designated for integrity works and the other for reviving idle wells, targeting over 20 wells within the year.
Enhancing reliability and integrity offshore is projected to lay a robust foundation for increased production over time. Given the installed infrastructure offshore, the 2025 agenda will involve partial asset shutdowns, particularly in 2Q and 3Q 2025.
Aside from Seplat, other industry players have been actively involved in offshore exploration endeavors in Nigeria. The Nigerian National Petroleum Company (NNPC) and its joint venture partner First Exploration & Petroleum Development Company (First E&P) recently made a significant hydrocarbon discovery in the Songhai field located in block OML 85 offshore Nigeria.