Seplat Production, Reserves Double Post Mobil Acquisition—Chairman
Seplat Energy Plc says its acquisition of Mobil Producing Nigeria Unlimited (MPNU) in 2024 has doubled the company’s oil and gas production and also expanded its reserves.
Its chairman, Mr. Udoma Udo Udoma, during the company’s 12th Annual General Meeting (AGM) in Lagos on Wednesday, said this marked a significant milestone in the company’s growth and expansion in the oil and gas sector.
Udoma reaffirmed the company’s commitment to further invest in production growth to ultimately benefit stakeholders.
He said, “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.
“The performance of the business met and even surpassed 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 11 million 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 MPNU. This acquisition more than doubled our production and increased our reserves.”
The chairman explained that merging the acquired business, which is now called Seplat Energy Producing Nigeria Unlimited (SEPNU), with Seplat Energy had created a Nigerian energy powerhouse.
He said the acquisition of the entire share capital of MPNU significantly advanced Seplat Energy’s ambition of being Nigeria’s leading independent energy company.
“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.
“Merging 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.
“This is an 85 per cent increase in reserves,” he said.
Going forward, Udoma said that the company plans to invest in both its onshore and SEPNU businesses to increase production in both divisions.
According to him, the company will also invest 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 added.
Speaking on the long-term sustainability of the business, Udoma said Seplat Energy would continue to focus on three key areas that are driving social development.
He said the focus would be on environmental care, reporting, and maximising returns for all stakeholders.
Also speaking, Mr Roger Brown, Chief Executive Officer of Seplat Energy, expressed excitement over the company’s performance in 2024.
He said that Seplat Energy, having transformed from a 100 per cent onshore operator, now has about 70 per cent of its production offshore and exported through three terminals operated by Seplat.
“The increased reserves and production that the SEPNU assets add to Seplat Energy’s operations are significant.
“This is making us consolidate our position as the leader, and this is a significant responsibility of stewardship of Nigeria’s natural resources, which we do not take lightly.
“Along with the oil and gas producing assets, we have gained operating control of dedicated shallow water infrastructure and three export terminals.
“These are 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 improved security and higher volumes passing through Qua Iboe and Yoho will improve revenue assurance and diversify our export infrastructure in the Niger Delta,” he said.
Brown maintained that with the addition of about a thousand skilled staff, Seplat Energy would strive to excel in production operations, boost production, and create value for stakeholders.
He said that the company had embarked on a new integration project after successfully bringing together Seplat and SEPNU. He added that the goal was to enhance capabilities, drive growth, and leverage combined strengths, all under the oversight of the newly established Integration Management Office Naira Rallies Market-Wide in Absence of FX Pressures
