What Seplat Energy’s 120,000 BPD Target Means for Nigeria’s Economy

Overview
Seplat Energy, a leading name in Nigeria’s oil and gas sector, has set its sights on a game-changing milestone. Following its recent acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil, the company plans to double its production capacity to an impressive 120,000 barrels per day (bpd) within six months. This strategic move highlights Seplat’s commitment to driving Nigeria’s energy growth amidst global energy challenges.

The ExxonMobil Acquisition
In December 2024, Seplat finalized its $1.28 billion purchase of MPNU, gaining control of 11 onshore oil blocks, 48 oil and gas fields, three export terminals, and five gas processing facilities. This acquisition positions Seplat as one of Nigeria’s largest domestic oil and gas producers, with a 16% share of the country’s total production capacity.

Seplat CEO Roger Brown emphasized the acquisition’s alignment with President Bola Tinubu’s vision of ramping up oil production to boost Nigeria’s foreign exchange reserves and stabilize the naira.

Unlocking Potential from Idle Wells
One of the most ambitious aspects of Seplat’s plan is rejuvenating underutilized assets. According to Seplat’s Chief Operating Officer, Samson Ezugworie, over 600 wells have been drilled across the newly acquired fields, but only 200 are actively producing. The company plans to revive these dormant wells, significantly boosting production and efficiency.

Ezugworie dismissed concerns about the value of onshore assets divested by International Oil Companies (IOCs), stating:

“We believe these assets hold significant untapped potential and abundant reserves.”

Why This Matters for Nigeria’s Energy Sector
This acquisition and subsequent ramp-up come at a crucial time for Nigeria. The energy sector faces challenges, including declining investments from IOCs and a growing need for domestic players to step up. Seplat’s move could:

• Boost oil production: Doubling production strengthens Nigeria’s position in global energy markets.
• Enhance local capacity: The acquisition helps shift control of critical assets to Nigerian companies.
• Drive economic growth: Increased output could attract foreign exchange and create more jobs.

Collaborating with NNPCL
As mandated by the Petroleum Industry Act, Seplat will operate the new assets in partnership with the Nigerian National Petroleum Company Limited (NNPCL). The collaboration aims to ensure regulatory compliance and foster efficient resource management.

Seplat CFO Eleanor Adaralegbe also highlighted plans to channel investments into improving the newly acquired infrastructure, which has seen minimal development in recent years.

A Turning Point for Nigeria’s Oil Sector
Seplat’s acquisition marks a significant step in addressing Nigeria’s declining production rates and attracting investment into the energy sector. The company’s aggressive production target could set a precedent for other local players to take bold steps in revitalizing onshore oil assets.

Final Thoughts
Seplat Energy’s drive to reach 120,000 bpd is more than a corporate goal; it represents a broader narrative of resilience and innovation in Nigeria’s oil and gas industry. As global energy markets evolve, Seplat’s proactive approach reinforces the importance of local expertise and partnerships in shaping the future of Africa’s energy landscape.