Seplat Energy Plc has reported an 11% increase in total production following the acquisition of Mobil Producing Nigeria Unlimited (MPNU), now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).
This was disclosed in the company’s audited financial results for the year ended December 31, 2024.
According to the report, Seplat’s onshore assets averaged 48,618 barrels of oil equivalent per day (boepd) in 2024, a 2% increase from 47,758 boepd recorded in 2023.
The integration of SEPNU contributed an annualized average of 4,329 kboepd, pushing total production to 52,947 boepd.
Following the acquisition, Seplat’s independently audited 2P reserves rose by 85% to 886 million barrels of oil equivalent (MMboe), up from 478 MMboe in 2023.
The company’s total 2P+2C reserves also increased by 125% to 1,217 MMboe, reinforcing its position as a leading player in Nigeria’s energy sector.
Operational milestones and gas infrastructure expansion
Seplat Energy recorded key operational achievements in 2024, including the resumption of 24-hour operations on the Trans Niger Pipeline (TNP) in Q4.
This development drove a 60% year-on-year increase in oil production from OML 53 due to improved export availability.
- The company also commissioned the Sapele Integrated Gas Plant (IGP) in Q4 2024, with commercial gas sales set to commence in early 2025.
- Additionally, the ANOH gas plant is on track to test with third-party dry gas in H1 2025, while tunneling operations on the OB3 pipeline resumed in Q1 2025.
Seplat Energy’s revenue grew by 5% to $1.116 billion in 2024, up from $1.061 billion in 2023, with contributions from SEPNU.
- Underlying adjusted revenue remained stable at $961 million.
- However, cash generated from operations dropped 26% to $384 million due to 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.
- However, net debt increased to $898 million from $306 million in 2023, reflecting the financial impact of the acquisition.
SEPNU integration and 2025 outlook
Following the completion of the SEPNU acquisition, the asset has delivered strong production performance, averaging 81.1 kboepd since integration, with a full-year average working interest production of 69.4 kboepd.
- For 2025, Seplat Energy 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.
- Initial capital expenditure (capex) guidance is between $260 million and $320 million, covering 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.
The company expects unit operating costs to rise slightly to $14.0-15.0/boe in 2025, with a focus on maintenance and integrity activities at SEPNU. Efforts will also be directed at reopening shut-in wells and accelerating an infill drilling campaign to sustain long-term production growth.
CEO’s statement
Seplat Energy’s Chief Executive Officer, Roger Brown, described 2024 as a defining year for the company, emphasizing the importance of the SEPNU acquisition.
“In addition to delivering key growth projects in our existing onshore business, we closed out 2024 by completing the acquisition of SEPNU, the largest in the company’s history, which adds significant scale and attractive low-cost growth potential,” Brown stated.
He added that Seplat will focus on reopening shut-in wells at SEPNU, executing a full drilling campaign for onshore assets, and achieving first gas production at ANOH. Additionally, the company plans to ramp up subsurface work and contracting for an infill drilling campaign at SEPNU to drive long-term growth.
