Seplat Energy Plc has recently reported an 11% increase in total production, attributed to the acquisition of Mobil Producing Nigeria Unlimited (MPNU), now known as Seplat Energy Producing Nigeria Unlimited (SEPNU). According to the company’s financial results for the year ending December 31, 2024, Seplat’s onshore assets saw an average daily production of 48,618 barrels of oil equivalent per day (boepd), marking a 2% increase from the previous year.
The integration of SEPNU into Seplat’s portfolio added an annual average of 4,329 kboepd, bringing the total production to 52,947 boepd. Additionally, the acquisition significantly boosted Seplat’s independently audited 2P reserves by 85% to 886 million barrels of oil equivalent (MMboe), up from 478 MMboe in 2023. The company’s total 2P+2C reserves also saw a 125% increase to 1,217 MMboe, solidifying its position as a leader in Nigeria’s energy sector.
In 2024, Seplat achieved several operational milestones, including the resumption of 24-hour operations on the Trans Niger Pipeline (TNP) in Q4, resulting in a 60% year-on-year increase in oil production from OML 53. The commissioning of the Sapele Integrated Gas Plant (IGP) in Q4 is expected to start commercial gas sales in early 2025. Furthermore, Seplat is making progress with the ANOH gas plant, scheduled to test with third-party dry gas in H1 2025, and the OB3 pipeline tunneling operations are set to resume in Q1 2025.
Seplat’s revenue for 2024 increased by 5% to $1.116 billion, with contributions from SEPNU. However, cash generated from operations decreased by 26% to $384 million, impacted by the timing of liftings, one-off costs related to the SEPNU acquisition, and working capital adjustments. The company ended the year with $469.9 million in cash, excluding $132.2 million in restricted cash, while its net debt rose to $898 million due to the financial implications of the SEPNU deal.
Following the successful performance of the SEPNU asset since the acquisition, Seplat Energy has set a production target of 120-140 kboepd for 2025, with Seplat Onshore contributing 48-56 kboepd and SEPNU forecasted at 72-84 kboepd. The company’s initial capital expenditure (capex) guidance for 2025 ranges between $260 million and $320 million, covering investments in 13 new onshore wells and offshore projects. Seplat also anticipates a slight increase in unit operating costs to $14.0-15.0 per barrel of oil equivalent, focusing on maintenance, integrity activities at SEPNU, and accelerating an infill drilling campaign to sustain long-term production growth.
Seplat Energy CEO, Roger Brown, described 2024 as a pivotal year for the company, underscoring the significance of the SEPNU acquisition. He emphasized Seplat’s commitment to reopening shut-in wells, executing a comprehensive drilling campaign for onshore assets, and achieving first gas production at ANOH.
