Seplat eyes African energy dominance with ambitious production, dividend targets

Seplat Energy Plc is charting an ambitious new course aimed at transforming itself from a leading indigenous oil producer into one of Africa’s foremost integrated energy companies, following the successful acquisition and integration of Mobil Producing Nigeria Unlimited (MPNU).

The company this week unveiled a five-year strategic growth plan targeting 500,000 barrels per day in total joint venture oil production, alongside a cumulative $1 billion dividend payout to shareholders.

The bold projections were disclosed during Seplat’s post-Annual General Meeting media briefing in Lagos, where company executives projected confidence about the group’s expanding scale, stronger balance sheet and long-term growth prospects.

Chairman of the company, Udoma Udo Udoma, said the targets reflected Seplat’s culture of delivering on promises.

“When I took over three years ago at the first AGM, we made some commitments as a board,” Udoma said. “Our commitment was that we would complete the MPNU acquisition, and before the end of that year, we achieved that target.”

The acquisition of MPNU, one of the most significant transactions in Nigeria’s oil and gas industry in recent years, has dramatically expanded Seplat’s operational footprint, reserve base and offshore presence.

With the integration, the company now operates 11 oil blocks — seven onshore and four offshore — as well as 48 producing fields and five gas processing plants.

Under the new roadmap, Seplat plans to increase production from its legacy assets to 200,000 barrels per day while targeting 500,000 barrels daily across its joint venture operations.

The company also signalled strong commitment to rewarding investors, announcing that it remains on track toward delivering $1 billion in cumulative dividends within the strategic period.

“We are a company that is ambitious, but when we announce targets, we achieve them,” Udoma stated. “We have credibility in terms of achieving targets.”

Chief Executive Officer, Roger Brown, described the company after the MPNU acquisition as significantly stronger and more resilient.

According to him, Seplat’s proven and probable reserves now stand at 1.1 billion barrels of oil equivalent, evenly split between oil and gas, while total working interest resources have risen to approximately 2.5 billion barrels when contingent resources are included.

Brown said the enlarged company is already benefitting from improved revenues, profitability and stronger investor confidence, with Seplat’s share price recently crossing the ₦10,000 mark on the Nigerian Exchange.

“Seplat now has a strong team across onshore and offshore, operating under a ‘One Seplat’ model with integrated support functions while keeping offshore and onshore assets operationally separate,” Brown explained.

Management said considerable effort has gone into integrating both organisations, with emphasis on harmonising operational systems, workplace culture and long-term strategic objectives.

Udoma noted that the company deliberately studied Mobil’s operational culture to identify synergies and build a unified institution capable of competing globally.

He said the integration process has created a stronger workforce driven by a shared commitment to expanding Nigeria’s oil and gas production capacity.

Industry analysts view Seplat’s expansion as part of the broader transition taking place in Nigeria’s petroleum industry, where indigenous companies are increasingly assuming control of assets divested by international oil majors.

The company’s growing focus on gas development is also seen as strategically important as Nigeria pushes to leverage gas as a transition fuel amid global decarbonisation efforts.

Brown stressed that Seplat’s diversified portfolio positions it to remain profitable despite fluctuations in global crude prices.

“The company is built to perform in both high and low oil price environments,” he said.

Beyond commercial growth, the company reiterated its commitment to host communities, noting that sustainable relationships with oil-producing communities remain central to its long-term operations.

As Seplat deepens its footprint across Nigeria’s energy landscape, the company’s ambitious production and dividend targets are expected to test not only its operational capacity, but also the growing ability of indigenous firms to compete at the highest level in Africa’s energy sector.