Seplat Energy assures shareholders of sustainability, increased production

Seplat Energy has assured its shareholders and stakeholders that the company’s future is bright given the strategic plans to invest in its Onshore and SEPNU businesses, targeting increased production in both divisions.

Speaking at a post Annual General Meeting (AGM) press briefing on Wednesday, the Chairman of Seplat Energy, Mr. Udoma Udo Udoma, noted that with the completed transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU), now Seplat Energy Producing Nigeria Unlimited (SEPNU), production is more than doubled and the reserves are increased.

He noted that upon completed acquisition of the entire share capital of MPNU in December 2024, merging the business, now SEPNU, has created a Nigerian energy powerhouse with pro-forma production of 118 thousand barrels of oil equivalent per day and pro-forma combined reserves of 886 million barrels of oil equivalent, an increase of 85 percent on reserves reported by Seplat Energy at the beginning of 2024.

“I am especially pleased to report that the closing cash consideration of $800 million at completion was funded entirely from cash, new and available debt facilities, with no dilution of shareholdings. This speaks volumes to the strength of our business,” he said.

He noted that the gas division would grow rapidly with the enormous gas resources offshore as well as the already established gas business onshore.

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The company will continue investing in maintenance and integrity activities, thus ensuring that the infrastructure continues to support production well into the future.

He also emphasized that to ensure the long-term sustainability of Seplat Energy’s business, the company would continue to focus on three key areas: driving social development, focusing on environmental care and reporting, and maximizing returns for all stakeholders.

“These key areas ensure that business can be financially sustainable while caring for the environment in which we operate and the communities of stakeholders with whom we interact,” he said.

Speaking on the impact of the complete acquisition of the entire share capital of MPNU, Mr. Roger Brown, Chief Executive Officer (CEO), noted that the increased reserves and production that the SEPNU assets add to Seplat Energy’s operations is significant.

This, he said, allows the company to consolidate its position as the leader and presents a significant responsibility of stewardship of Nigeria’s natural resources, which the company does not take lightly.

“Along with the oil and gas producing assets, we gain operating control of dedicated shallow water infrastructure and three export terminals, namely Qua Iboe Terminal, Bonny River Terminal and the Yoho Floating Storage and Offloading (FSO) facility, as well as Natural Gas Liquids (NGL) plants at East Area Project (EAP) and Oso,” he said.

On production figures in 2024, Mr. Samson Ezugworie, Chief Operating Officer (COO), noted that 2024 was a year of significant achievement across the entire spectrum of existing business.

This was topped up with the addition of SEPNU assets in December.

“Following Change-in-Control on December 12th 2024, we included 19 days of production from the SEPNU assets which had our full year combined business delivering 52,947 boepd working interest (Guidance: 46–52Kboe), 11 percent higher than 2023.

Our legacy business contributed an average daily working interest production of 48,618 boepd, modestly aided by a confluence of several positive catalysts including good performance of the new wells in the 2024 drilling campaign, commencement of gas production from Sapele Integrated Gas Plant (SIGP), improved gas production from Oben following turnaround maintenance, and continuation of the efficiency at the Trans Niger Pipeline (TNP). SEPNU production contributed annualized average production of 4,329 kboepd,” he said.

Looking ahead, Ezugworie noted that the company’s production guidance to the market is 120,000–140,000 boepd working interest.

He added that as seen from the Q1 results, it reported 131,561 boepd, which is in line with our guidance.

Mrs. Eleanor Adaralegbe, Chief Financial Officer (CFO), Seplat Energy, noted that following a review of Seplat’s operational performance and business outlook, the Board decided to declare an additional special dividend of US$ 3.3 cents per share (N46.06 per share).

She noted that the Board recommended a core dividend of US$ 3.6 cents per share (N55.27 per share) for the final quarter of 2024 subject to appropriate withholding tax (WHT).

This brings the total core dividend declared for 2024 to US$ 13.2 cents per share (N202.66 per share), a 10 percent increase on 2023.

“The 4Q 2024 and special dividends will be paid to shareholders whose names appear in the Register of Members as at the close of business on 9 May 2025 (LSE) and 12 May 2025 (NGX),” she said.

She noted that the payment of the special dividend reflects the Board’s continued confidence in the outlook for the Company and is underpinned by a strong balance sheet.

“The Company will review its dividend policy through 2025 as part of the overall capital allocation policy of the enlarged Group,” she said.

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