Seplat Energy Unveils Ambitious $6 Billion Growth Plan and Potential NNPC Partnership
Nigerian energy company Seplat Energy has revealed plans for discussions with the Nigerian National Petroleum Company Limited (NNPC) regarding the possible sale of a 10% interest in the NNPC/SEPNU Joint Venture, which would result in SEPNU holding a 30% stake and NNPC 70%, with Seplat continuing as operator.
The company has announced ambitious five-year targets for 2026-2030, aiming to grow production to around 200,000 barrels of oil equivalent per day by 2030, representing a 50% increase from mid-2025 levels. Seplat expects to generate $5-6 billion in cash flow over the period, supported by increased capital spending and ongoing operational efficiencies.
The growth strategy includes plans to invest $2.5-3 billion, drilling 120-150 new wells and sanctioning up to three gas projects. The company aims to reduce operating costs from $12.5 per barrel of oil equivalent to $10 per barrel through cost optimization and higher production volumes.
Seplat has introduced a new dividend policy designed to return 40%-50% of Free Cash Flow to investors over the 2026-2030 period, which could result in cumulative cash dividends of $1.0 billion, supported by a minimum annual payout of $120 million. A new Competent Person’s Report shows significant increases in reserves and resources, with offshore 2P reserves rising 40% to 551.7 million barrels of oil equivalent and 2C resources jumping 378% to 1,178.2 million barrels of oil equivalent.
Source: nairametrics.com
