Seplat rolls out five-year roadmap, aims for half-million barrel daily production, $1 billion dividend payout

Seplat Energy Plc has unveiled an ambitious five-year growth strategy, seeking to boost oil production to 500,000 barrels per day and distribute $1 billion in dividends to shareholders, building on the momentum from its acquisition and integration of Mobil Producing Nigeria Unlimited, MPNU.

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This development was disclosed by the company's Chairman, Senator Udoma Udo Udoma, during a media briefing following the company's Annual General Meeting in Lagos, where he outlined the company's vision to emerge as a leading energy firm in Nigeria and beyond.

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Senator Udoma reflected on his tenure, noting that when he took over three years ago, the board made key commitments, including completing the MPNU acquisition, which was achieved before the end of that year.

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Under the new plan, Seplat aims to produce 200,000 barrels per day from its legacy company and 500,000 barrels per day from its total joint venture production, according to Senator Udoma.

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The company is on track to meet its $1 billion dividend target, having recently announced a payout of 25 cents per share, with Senator Udoma emphasizing that Seplat has a track record of achieving its announced targets.

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He attributed the company's enhanced position to the integration with MPNU, which has made Seplat larger, more diversified, and better equipped to achieve its goals, with production more than doubling and plans to triple it.

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Senator Udoma explained that Seplat took the time to understand Mobil's culture, identify areas of synergy, and create a unified "One Seplat" culture that combines the strengths of both legacy and Mobil teams.

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This integration has fostered strong engagement and a shared drive among staff to advance Nigeria's energy production and gas development, with the company employing an asset management structure for its offshore and onshore operations while integrating support functions.

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Chief Executive Officer, Mr. Roger Brown, noted that the MPNU integration has significantly scaled up Seplat's operations, making it a larger and more robust company.

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Seplat now operates 11 blocks, comprising seven onshore and four offshore, with 48 producing fields, 5 gas plants, and 1.1 billion barrels of 2P reserves split evenly between oil and gas, according to Mr. Brown.

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The company's total working interest reserves have risen to 2.5 billion barrels, including 2C resources, with Mr. Brown highlighting that this increased scale is already reflected in stronger revenues and profits.

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Mr. Brown emphasized that Seplat now has a strong team operating under a "One Seplat" model, with integrated support functions and operationally separate offshore and onshore assets, making the company more resilient in both high and low oil price environments.

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This resilience has driven a surge in Seplat's share price, which has crossed N10,000 in Lagos for the first time and is performing strongly in London, according to the CEO.

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Beyond shareholder returns, Mr. Brown stressed Seplat's commitment to giving back to its host communities, underscoring the company's social responsibility.