Following the completion of its $1.28 billion acquisition of ExxonMobil’s onshore oil and gas assets in Nigeria, the continent’s largest oil-producing nation, Seplat Energy Plc is starting a significant project to revive hundreds of dormant oil wells in Nigeria.
By reactivating dormant oil wells and increasing production at these sites, Seplat hopes to revitalize the country’s oil industry.
With the purchase of ExxonMobil’s holdings, Seplat intends to reactivate hundreds of dormant oil wells, of which only approximately 200 are currently currently producing.
In an interview with the Financial Times on Tuesday, Seplat’s chief financial officer, Eleanor Adaralegbe, disclosed this forecast.
Over the course of six months, he said, the London-listed company intends to quadruple its output from around 50,000 barrels per day to nearly 120,000 barrels per day.
He said the assets had received relatively little investment up to this point, but he promised that once Seplat completely enters the market, there will be a chance to expand even more.
The London-listed business bought a variety of ExxonMobil’s oil and gas assets in December, after the Nigerian Upstream Petroleum Regulatory Commission took over two years to approve the deal
With an asset base that includes 48 oil and gas fields, three export terminals, five gas processing facilities, and 11 onshore oil blocks, Seplat is now among the largest domestic producers following the $1.28 billion acquisition of Mobil Producing Nigeria Unlimited.
Adaralegbe said,
Roger Brown, the CEO of Seplat, claims that with its combined assets, Seplat currently has 16% of Nigeria’s production capacity.
As required by law in the nation’s oil and gas sector, he said the company will manage the assets in cooperation with the state-owned Nigerian National Petroleum Company.
According to Brown, his organization is certain that it can collaborate with NNPC to increase total production, which is President Bola Tinubu of Nigeria’s declared objective.
Similarly, the firm’s Chief Operating Officer, Samson Ezugworie, noted that many of the Nigerian assets require time and investment so they can be produced again after being left idle.
Exxon’s sale comes as international oil groups exit Nigeria’s troubled onshore and shallow water sector, which has been beset by decades of environmental damage and, more recently, by declining production.
TimesNow.com.ng reported that Seplat Energy Plc has unveiled plans to increase its crude oil production by 140% to 120,000 barrels per day.
The company’s Chief Financial Officer, Eleanor Adaralegbe, revealed in an interview with the Financial Times that they would increase output from the present 50,000 bpd to 120,000 bpd in H1 2025.
This move will position the oil and gas company to fill the vacuum caused by ExxonMobil’s exit from Nigeria’s onshore oil sector.
Source: TimesNow.com.ng
