Seplat Energy, co-founded and led by Nigerian energy magnate Austin Avuru, is set to invest up to $320 million in 2025 to expand its onshore oil and gas operations, reinforcing its position as a key player in Nigeria’s energy sector.
The company’s capital expenditure plan includes between $180 million and $220 million allocated to its Seplat Onshore division, while its newly acquired offshore subsidiary, Seplat Energy Producing Nigeria Unlimited (SEPNU), will receive $80 million to $100 million.
The funds will be used for drilling 13 new onshore wells, replacing an inlet gas exchanger on the East Area Project (EAP) NGL project offshore, and other key infrastructure upgrades, according to the company’s latest earnings release.
Expansion and Offshore Growth Strategy
Chief Executive Officer Roger Brown described 2024 as a “defining year” for Seplat, citing the completion of the SEPNU acquisition—the largest in the company’s history—as a key milestone. The offshore acquisition has created a “closed-loop system” from wellhead production to hydrocarbon sales, enhancing efficiency and output.
“This year, we will focus on re-opening shut-in wells at SEPNU while executing a full drilling campaign for our onshore assets,” Brown said. “We also look forward to delivering first gas at ANOH and accelerating the subsurface work and contracting needed to commence an infill drilling campaign at SEPNU.”
Seplat Reports Strong Profit, Raises Dividend
Co-founded by Austin Avuru and Ambrosie Orjiako, Seplat has strengthened its foothold in Nigeria’s energy industry through strategic acquisitions, including an $800 million deal for ExxonMobil’s Nigerian assets. The company is also working to unlock 14 trillion cubic feet of gas to boost power generation, LNG production, and fertilizer manufacturing.
Seplat reported a 137 percent surge in revenue to N1.652 trillion ($1.11 billion) for the financial year ended December 2024, compared to N696.9 billion ($1.06 billion) in 2023. Operating profit climbed to N647.9 billion ($437.9 million) from N163.7 billion ($249.4 million) year-on-year, while profit before tax jumped to N561.4 billion ($379.4 million) from N125.5 billion ($191.2 million).
The company also saw a significant boost in gross profit, rising to N710.1 billion ($479.9 million) from N349.3 billion ($232.5 million) in 2023. Meanwhile, cash generated from operations surged 66 percent to N567.5 billion ($383.5 million) from N340.6 billion ($226.6 million) a year earlier.
Seplat’s strong financial position allowed the company to increase its total dividend payout by 10 percent to $0.165 per share for 2024, underscoring confidence in its growth trajectory. With plans to ramp up production from 50,000 to 120,000 barrels per day by mid-2025, Seplat continues to position itself as a key driver of Nigeria’s energy transition.
