Seplat Energy Plc has reported an 11% increase in total production following its acquisition of Mobil Producing Nigeria Unlimited (MPNU), now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU). The company’s 2024 audited financial results revealed that onshore assets averaged 48,618 barrels of oil equivalent per day (boepd), a 2% rise from 47,758 boepd in 2023.
The integration of SEPNU contributed an annualized average of 4,329 kboepd, pushing Seplat’s total production to 52,947 boepd. This acquisition also boosted the company’s 2P reserves by 85% to 886 million barrels of oil equivalent (MMboe) from 478 MMboe in 2023, while total 2P+2C reserves surged 125% to 1,217 MMboe.
Operational Milestones and Gas Infrastructure Expansion
Seplat achieved key operational successes 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.
Other major developments include:
•Commissioning of the Sapele Integrated Gas Plant (IGP) in Q4 2024, with commercial gas sales expected in early 2025.
•ANOH gas plant on track for testing with third-party dry gas in H1 2025.
•Resumption of tunneling operations on the OB3 pipeline in Q1 2025.
Revenue Growth and Financial Performance
Seplat Energy reported a 5% increase in revenue to $1.116 billion in 2024, up from $1.061 billion in 2023, driven by SEPNU’s contributions. However, cash generated from operations declined 26% to $384 million due to acquisition-related costs and working capital adjustments.
Other key financial highlights:
•Adjusted revenue remained stable at $961 million.
•Year-end cash balance stood at $469.9 million, excluding $132.2 million in restricted cash.
•Net debt surged to $898 million from $306 million in 2023 due to the SEPNU acquisition.
SEPNU Integration and 2025 Outlook
Following its acquisition, SEPNU has delivered strong production performance, averaging 81.1 kboepd since integration. For 2025, Seplat has set a production target of 120-140 kboepd, with Seplat Onshore expected to contribute 48-56 kboepd and SEPNU 72-84 kboepd.
Capital expenditure (capex) is projected at $260 million to $320 million, covering 13 new onshore wells, offshore projects, and infrastructure upgrades, including a replacement inlet gas exchanger for the East Area Project (EAP) NGL project.
Operating costs are expected to rise slightly to $14.0-15.0/boe in 2025 due to maintenance and integrity projects at SEPNU. Seplat also plans to reopen shut-in wells and accelerate an infill drilling campaign to sustain long-term production growth.
CEO’s Statement
Seplat Energy’s CEO, 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.
Looking ahead, Seplat plans to expand its drilling campaign, ramp up gas production at ANOH, and enhance subsurface work at SEPNU to drive long-term profitability and maintain its position as a leading energy player in Nigeria.
