Seplat seeks higher oil returns through stronger asset management

Independent oil and gas operators must prioritise asset integrity, modernise ageing infrastructure and improve operational efficiency to maximise returns on upstream investments amid rising production costs and energy transition pressures, the Chief Executive Officer of Seplat Energy Plc, Effiong Okon, has said.

Speaking at the 49th Nigeria Annual International Conference and Exhibition (NAICE 2026) organised by the Society of Petroleum Engineers in Lagos, Okon said resilient energy systems depend on sustained investment in asset reliability and efficient management of production infrastructure.

Addressing the conference themed “Building Resilient Energy Systems in a Rapidly Evolving Energy Landscape,” he stressed that critical oil and gas facilities should consistently achieve top-quartile operational performance of about 95 per cent to minimise unplanned downtime and production losses.

Okon said operators must develop a comprehensive understanding of every stage of the production chain—from reservoirs and wells to flow lines, surface facilities and export infrastructure—to optimise asset performance and improve profitability.

“You must understand your reservoir capacity, well capacity, flow lines and surface facilities. This means having a total understanding of the asset,” he said.

He identified several measures capable of reducing operating costs, including efficient water treatment, eliminating routine gas flaring, commercialising associated gas instead of paying flare penalties, improving crude evacuation systems and strengthening logistics and outsourcing capabilities.

According to him, improving operational efficiency has become increasingly important as operators seek to maximise value from existing producing assets while attracting fresh investment into Nigeria’s upstream petroleum sector.

Okon also underscored the importance of human capital development, saying stronger technical capacity across reservoir engineering, well management and production operations would enhance operational performance and long-term value creation.

He called on the Society of Petroleum Engineers to continue producing highly skilled professionals capable of closing the industry’s technical skills gap and supporting the sector’s future growth.

On shareholder value, the Seplat Energy chief said the company has continued to reward investors through consistent dividend payments and share price appreciation while maintaining disciplined capital allocation to support sustainable growth.

He disclosed that Seplat remains one of Nigeria’s leading domestic gas producers, with approximately 12 trillion cubic feet of gas resources in its shallow-water portfolio, which the company plans to accelerate and commercialise.

Okon added that Seplat is also expanding its Liquefied Petroleum Gas business to increase the availability of cleaner cooking fuel, reduce dependence on biomass and support lower carbon emissions as part of Nigeria’s energy transition strategy.