Seplat Energy Plc has announced an 11% increase in total production following the acquisition of Mobil Producing Nigeria Unlimited (MPNU), now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU). The company’s financial results for the year ending December 31, 2024, revealed that Seplat’s onshore assets averaged 48,618 barrels of oil equivalent per day (boepd), marking a 2% rise from the 47,758 boepd recorded in 2023.
The integration of SEPNU added an annualised average of 4,329 kboepd, pushing Seplat’s total production to 52,947 boepd. The acquisition has also significantly boosted Seplat’s independently audited 2P reserves, which grew by 85% to 886 million barrels of oil equivalent (MMboe), up from 478 MMboe in 2023. Furthermore, the company’s total 2P+2C reserves increased by 125% to 1,217 MMboe, reinforcing its leadership in Nigeria’s energy sector.
Seplat achieved key operational milestones in 2024, including the resumption of 24-hour operations on the Trans Niger Pipeline (TNP) in Q4, which resulted in a 60% year-on-year increase in oil production from OML 53. The company also commissioned the Sapele Integrated Gas Plant (IGP) in Q4, with commercial gas sales expected to begin in early 2025. Additionally, Seplat is progressing with the ANOH gas plant, set to test with third-party dry gas in H1 2025, and the OB3 pipeline tunneling operations are scheduled to resume in Q1 2025.
Seplat’s revenue for 2024 rose by 5% to $1.116 billion, up from $1.061 billion in 2023, with contributions from SEPNU. However, cash generated from operations dropped 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. Its net debt increased to $898 million, reflecting the financial impact of the SEPNU deal.
Since the SEPNU acquisition, the asset has performed well, averaging 81.1 kboepd, with a full-year average working interest production of 69.4 kboepd. Looking ahead to 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.
The company’s initial capital expenditure (capex) guidance for 2025 is between $260 million and $320 million, covering investments in 13 new onshore wells and offshore projects. Seplat also expects a slight increase in unit operating costs to $14.0-15.0 per barrel of oil equivalent, with a focus on maintenance, integrity activities at SEPNU, and accelerating an infill drilling campaign to maintain long-term production growth.
Seplat Energy CEO, Roger Brown, called 2024 a vital year for the company, highlighting the significance of the SEPNU acquisition. He emphasized that the company would focus on reopening shut-in wells, executing a comprehensive drilling campaign for onshore assets, and achieving first gas production at ANOH.
