Seplat Energy Plc, one of Nigeria’s leading independent oil and gas companies, has announced plans to invest between $2.5 billion and $3 billion over the next five years to develop three new gas projects.
The disclosure was made in Seplat’s latest medium-term update, the first since its acquisition of ExxonMobil’s onshore assets in Nigeria in December 2024, released Thursday to the Nigerian Stock Exchange (NGX).
While specific details of the new gas projects were not provided, Seplat has consistently emphasized its commitment to gas development.
Shortly after acquiring Exxon’s assets, the company revealed a $320 million investment to revive idle wells, with gas playing a central role.
Earlier this year, CEO Roger Brown stated, “We are focused on reviving existing wells, expanding drilling campaigns, and increasing gas volumes.”
Why gas matters to Seplat
Gas is a cornerstone of Seplat’s long-term strategy in Nigeria.
Over the past eight years, the company has steadily increased its investments to unlock value from previously idle assets.
In Q1 2025, Seplat’s gas output surged by 50%, reaching 14.9 billion cubic feet (Bcf), up from 10 Bcf in Q4 2024.
In July, COO Samson Ezugworie revealed the company’s outlook: “We foresee a big growth in the gas sector in Nigeria, because there [are] a lot of gas reserves in the east. We believe in this for the future.”
Currently supplying around 30% of Nigeria’s domestic gas demand, Seplat is working to unlock 850 million cubic feet per day across three major projects: Anoh, Oben and Sapele.
Upon completion, these facilities are expected to serve 15–20 million Nigerians.
Production targets and JV restructuring
The investment plan also includes drilling 120 to 150 new wells, with a goal to ramp up daily production to approximately 200,000 barrels of oil equivalent (boe) by 2030.
Seplat confirmed ongoing discussions with the Nigerian National Petroleum Company Limited (NNPC) to sell a 10% stake in the NNPC/SEPNU Joint Venture (JV). If finalized, the ownership structure would be:
- NNPC: 70%
- Seplat: 30% (retaining operator status)
However, “the discussions would remain subject to parties agreeing terms and executing a substantive agreement,” Seplat noted.
The company also stressed its dividend policy, which guarantees a minimum annual payout of $120 million, contingent on Brent crude averaging above $50/bbl.
To support this, Seplat aims to reduce its operating expenditures to $10/boe by 2030, down from $12.5/boe.
