Seplat Energy plans to revive 400 idle oil wells to boost its crude production to over 120,000 barrels per day in the coming months.
The Nigerian company, which took over ExxonMobil’s local operations, aims to more than double production within six months by capitalizing on the exit of foreign majors from the country’s onshore oil sector.
Seplat, listed in London, finalized its purchase of several oil and gas assets from the US energy giant in December, following a delay of over two years as Nigerian regulators took time to approve the deal, according to the Financial Times.
Seplat’s senior management told the Financial Times that the plan is to more than double its output from around 50,000 barrels per day to approximately 120,000 bpd within the next six months.
“The assets have had very minimal investments until now,” Seplat’s Chief Financial Officer Eleanor Adaralegbe told the Financial Times in an interview. “We expect that once we come in there will be an opportunity to grow that much further,” she added.
The $1.28 billion acquisition of Mobil Producing Nigeria Unlimited has positioned Seplat as one of the largest domestic producers, with an asset base that includes 11 onshore oil blocks, 48 oil and gas fields, three export terminals, and five gas processing facilities.
According to CEO Roger Brown, the combined assets give Seplat control of 16 percent of Nigeria’s current production capacity.
The company is expected to manage the assets alongside the state-owned NNPC, as required by law in Nigeria’s oil and gas industry.
Brown expressed confidence that Seplat could collaborate with NNPC to boost overall production, aligning with the goal of Nigeria’s President Bola Tinubu.
However, the Financial Times noted that NNPC has faced criticism for decades of alleged corruption and mismanagement, and last year admitted to owing its suppliers over $6 billion.
