Seplat Energy Plc believes the future is very bright for the newly enlarged Seplat Energy.
Udoma Udo Udoma, chairman, Seplat Energy Plc, noted this during the company’s 12th annual general meeting (AGM) held Wednesday in Lagos.
While responding to question on what the future holds for Seplat Energy given the progress recorded by the company in the last one year, Udoma said, “We believe the future is very bright for the newly enlarged Seplat Energy.”
“We plan to invest in both our Onshore and SEPNU businesses to increase production in both divisions, at the same time investing in maintenance and integrity activities to ensure the infrastructure will continue to support production well into the future. Our gas division will grow rapidly with the enormous gas resources offshore as well as the already established gas business onshore,” he noted.
He said, “We believe the future is very bright for the newly enlarged Seplat Energy group We plan to invest in both onshore and SEPNU businesses to increase production. We also plan to invest in maintenance and integrity activities to ensure the infrastructure will continue to support production well into the future.”
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“We plan to outline our operational strategy for the Group at the Capital Markets Day in Q3 2025. To ensure the long-term sustainability of our business, we continue to focus on three key areas, which are driving social development, focusing on environmental care and reporting and lastly, 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,” Udoma noted.
Roger Brown, Chief Executive Officer, Seplat Energy Plc while speaking on what the complete acquisition of the entire share capital of MPNU means to Seplat Energy going forward said, “The increased reserves and production that the Seplat Energy Producing Nigeria Unlimited (SEPNU) assets add to Seplat Energy’s operations is significant, making us to consolidate on our position as the leader, and this is a significant responsibility of stewardship of Nigeria’s natural resources, which we do not take lightly,” Brown said.
“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,” the CEO said.
Speaking on the expansion of the business from an onshore focused asset base to shallow waters/offshore given the new SEPNU assets, Seplat CEO said, “From being a 100 percent onshore operator, now approximately 70 percent of our production is offshore and exported through three terminals which Seplat operates. The improved security and higher volumes passing through Qua Iboe and Yoho will improve revenue assurance and diversify our export infrastructure in the Niger Delta.”
“To ensure excellent execution in production operations, we are joined by about a thousand very highly skilled staff whom I know are excited to become part of the Seplat Energy family, and together we will work tirelessly to increase production and maximise the value of these assets for all our stakeholders.
“A new integration project has been launched following the successful coming together of Seplat and SEPNU. This marks the beginning of an exciting chapter for Seplat Energy as we unify two exceptional teams, cultures, and visions into one organisation. The integration process aims to enhance our capabilities, drive sustained growth, and maximise the potential of our combined strengths. The Integration Management Office (IMO) has been established to serve as the hub for this process,” Brown said.
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On whether the performance of the business for the 2024 financial year met the Board’s expectations, Udoma said, “Yes, I believe the performance of the business met our expectations. The year was truly transformational for the development of our business. Our core business delivered another year of safe and reliable operations, achieving key targets for production and operating efficiency, which supported another year of strong cash flow generation and shareholder returns”.
“We completed the transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU), which more than doubled our production and increased our reserves. The acquired assets have a world-class history as some of Nigeria’s most important oil fields and, as the new operator of these assets, we intend to invest to increase production for the benefit of all our stakeholders.
“Yes, the performance of the business met the Board’s expectations. We delivered a year of strong production, with revenues over one billion dollars, at $1.116 billion. This was achieved through safe and reliable operations, with 11million man hours without any lost-time injury (LTI). It was also a transformational year for the development of our business due to the completion of the acquisition of Mobil Producing Nigeria Unlimited (MPNU) on the 12th of December, 2024. This acquisition more than doubled our production and increased our reserves,” Udoma noted.
“That ambition was significantly advanced when we completed our acquisition of the entire share capital of MPNU in December 2024. Merging the business, which we now call Seplat Energy Producing Nigeria Unlimited (SEPNU), with Seplat Energy has created a Nigerian energy powerhouse. 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.
“The acquisition of the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) significantly advances this ambition
Merging the business, which we now call Seplat Energy Producing Nigeria Unlimited (SEPNU) with Seplat Energy 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,” Udoma noted.
