• Seplat Energy plans up to $3 billion in investments over five years for recently acquired ExxonMobil assets.

• The Nigerian firm aims to increase production by 50% to 200,000 barrels per day equivalent.

• Seplat's financing strategy for the ambitious plan includes internal funds and potential external financing, given its current debt and cash position.

Nigerian independent Seplat Energy Plc targets investments of up to $3 billion over five years to develop oil and gas assets acquired from ExxonMobil. Seplat finalized the acquisition of these assets, valued at approximately $1.28 billion, in December 2024. The company now aims to boost its production to 200,000 barrels per day equivalent, representing an approximate 50% increase over five years.

Seplat presented this strategic investment plan to investors on September 18. This ambitious program follows semiannual results released in March, which detailed a more modest capital expenditure forecast of $260 million to $320 million for 2025. This disparity raises questions about Seplat's capacity to finance such a significant program.

Financial statements reveal Seplat's net debt stood at $897.8 million at the end of 2024, decreasing to $676.3 million by June 30, 2025. The company reported $419.4 million in cash at the same date. In 2024, Seplat's operations generated nearly $384 million in cash flow. These figures suggest Seplat can fund a portion of its projects internally and retains capacity for additional borrowing. However, assembling $3 billion remains a challenge, necessitating a multi-year disbursement and potentially external financing.

Beyond Seplat, several international oil majors have divested their Nigerian onshore and shallow-water assets in recent years. Notably, Shell completed the sale of its portfolio to Renaissance Africa Energy in 2024. These transactions underscore a gradual transfer of these assets to local operators.

For the Nigerian state, a growing share of export revenues depends on the performance of these domestic companies. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported crude oil losses from theft and metering inaccuracies at approximately 9,600 barrels per day at the end of July 2025, marking their lowest level since 2009.

Seplat's 2026-2030 strategic plan forecasts drilling between 120 and 150 wells and validating up to three new gas projects.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum