Oil & Gas

Seplat Energy, a prominent Nigerian oil and gas company, is preparing to rejuvenate old oil wells across Nigeria, following its successful acquisition of ExxonMobil’s onshore oil and gas assets in the country. This acquisition marks a significant milestone for Seplat as it aims to increase its capacity and contribute to the country's growing energy sector.

Seplat’s plans include revitalizing aging oil wells, which will play a crucial role in boosting its production capacity and enhancing its position in Nigeria's energy market.

The completion of the deal was a long-awaited development, with the Nigerian Petroleum Regulatory Commission approving the sale in October 2024. This decision came over two years after the deal was initially signed in 2022.

The approval by Nigeria’s federal government further solidified Seplat’s entry into ExxonMobil’s Nigerian assets, which is expected to have a transformative impact on Seplat’s growth, profits, and its contribution to Nigeria's energy boom.

Seplat's Chief Operating Officer, Samson Ezogowri, revealed that the company's primary focus is to revitalize Nigeria’s old oil wells, many of which have been underperforming for years. According to Ezogowri, out of nearly 600 oil blocks, only 200 are actively producing oil. Seplat’s strategy will involve interventions in drilling and short-term oil production activities, aiming to recycle production from these aging wells.

This initiative aligns with the ongoing trend of foreign companies exiting Africa's largest oil producer, allowing local firms like Seplat to take a more dominant role in the sector.

The acquisition is expected to significantly bolster Seplat's reserves and production. The company anticipates an 86% increase in its proven and potential reserves, reaching 887 million barrels of oil equivalent. Production levels are projected to surge by 148%, elevating Seplat’s daily output to over 200,000 barrels from its current 71,000 barrels.

This expansion also positions Seplat for a substantial financial boost, with revenues set to rise by 245%, reaching $1.456 billion. Furthermore, the deal will expand Seplat's workforce by incorporating approximately 1,500 former MBNU employees and contractors, marking a major step in the company’s operational growth.