Seplat Energy Plc is set to reactivate hundreds of dormant oil wells in Nigeria following its acquisition of Exxon Mobil Corp.’s onshore oil and gas assets in the country.
The purchase is a significant step in leveraging the exit of foreign companies from Africa’s largest oil producer.
In October, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved the sale of ExxonMobil’s onshore oil and gas assets in Nigeria to the local company Seplat Energy, more than two years after the deal was first signed in February 2022.
This week, Seplat paid $800 million of the total purchase price, adding to an initial $128 million paid when the agreement was signed in 2022, Reuters reported.
The company deferred $257.5 million of the transaction to December 2025 to account for decommissioning, abandonment, and joint venture costs.
Listed in Lagos and London, Seplat considers the acquisition a financially sound move, citing favourable costs and anticipated returns.
Seplat Energy Plc anticipates the deal will double its production capacity and significantly expand its portfolio.
The completion of this acquisition has created Nigeria’s leading independent energy company, with the enlarged company having equity in 11 blocks (onshore and shallow water Nigeria); 48 producing oil and gas fields; five gas processing facilities; and three export terminals.
The company plans to boost output from the current 71,000 barrels of oil equivalent per day to over 200,000 barrels daily, according to CEO Roger Brown. However, Brown did not specify a timeline for achieving this target.
