Seplat Energy Expands Production and Reserves Following Mobile..

Seplat Energy Plc has reported an 11 per cent increase in its total production, following the successful acquisition of Mobil Producing Nigeria Unlimited (MPNU), now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).

The announcement was made in the company’s audited financial results for the year ending December 31, 2024.

In the report, Seplat revealed that its onshore assets averaged 48,618 barrels of oil equivalent per day (boepd) in 2024, marking a 2 per cent increase from the 47,758 boepd recorded in 2023.

The integration of SEPNU contributed significantly, with an annualized average production of 4,329 kboepd, raising Seplat’s total production to 52,947 boepd.

The acquisition also led to a sharp increase in Seplat’s reserves. Its independently audited 2P reserves surged by 85 per cent to 886 million barrels of oil equivalent (MMboe), up from 478 MMboe in 2023.

Additionally, the company saw a 125 per cent increase in its total 2P+2C reserves, which now stand at 1,217 MMboe, solidifying Seplat’s position as a dominant force in Nigeria’s energy sector.

In 2024, Seplat achieved key operational milestones, including the resumption of 24-hour operations on the Trans Niger Pipeline (TNP) in Q4. This contributed to a 60 per cent year-on-year increase in oil production from OML 53, thanks to improved export availability.

Furthermore, Seplat launched the Sapele Integrated Gas Plant (IGP) in Q4, with commercial gas sales expected to begin in early 2025. The company also made progress on the ANOH gas plant, which is set to begin testing with third-party dry gas in H1 2025.

Despite a revenue increase of 5 per cent, totalling $1.116 billion in 2024, Seplat’s cash flow from operations fell by 26 per cent to $384 million, largely due to the timing of liftings, one-off costs from the SEPNU acquisition, and working capital adjustments.

The company ended the year with $469.9 million in cash at the bank, excluding $132.2 million in restricted cash. Net debt also rose to $898 million, up from $306 million in 2023, reflecting the financial impact of the SEPNU deal.

Since the acquisition, SEPNU has delivered impressive production figures, averaging 81.1 kboepd since integration, with a full-year average working interest production of 69.4 kboepd. For 2025, Seplat has set a production target of 120-140 kboepd, with Seplat Onshore expected to contribute 48-56 kboepd and SEPNU forecasted at 72-84 kboepd.

The company is also planning capital expenditure (capex) between $260 million and $320 million, which will fund investments in 13 new onshore wells and offshore projects, including the replacement of an inlet gas exchanger on the East Area Project (EAP) NGL project.

Seplat anticipates a slight increase in unit operating costs for 2025, expected to rise to $14.0-15.0 per barrel of oil equivalent (boe), with a focus on maintaining and enhancing SEPNU’s infrastructure, reopening shut-in wells, and ramping up an infill drilling campaign to sustain long-term production growth.

Seplat’s CEO, Roger Brown, hailed 2024 as a pivotal year for the company, underscoring the importance of the SEPNU acquisition. “In addition to advancing key growth projects in our onshore business, the completion of the SEPNU acquisition, the largest in the company’s history, significantly boosts our scale and offers substantial low-cost growth potential,” Brown said.

He further emphasized that the company would focus on reopening shut-in wells at SEPNU, executing a full drilling campaign for its onshore assets, and achieving first gas production at ANOH, as part of its strategy for sustainable growth.