Seplat Energy Plc, one of Nigeria’s leading independent oil companies, has outlined plans to revitalise 400 idle oil wells across the country. The announcement comes on the heels of its $1.28 billion acquisition of ExxonMobil’s onshore and shallow water oil and gas assets in Nigeria.
With fuel prices soaring and energy costs straining Nigerian households and businesses, this development offers a glimmer of hope. The move aims to boost domestic production and alleviate reliance on costly imports, which have burdened the country’s economy for years.
Reviving Nigeria’s Oil Assets
Currently, only 200 of Seplat’s 600 oil wells are operational. The company’s Chief Operating Officer, Samson Ezugworie, has emphasised their immediate priority: deploying rig interventions, short-term oil generation, and resuscitating dormant wells. By bringing these idle wells back to life, Seplat seeks to ramp up production significantly.
The acquisition of ExxonMobil’s assets includes 11 oil blocks, 48 producing fields, five gas processing facilities, and three export terminals. According to Seplat CEO Roger Brown, this deal could double the company’s daily production to over 200,000 barrels of oil equivalent (BOE) per day from its current output of approximately 71,000 BOE per day.
Strategic Timing
Seplat’s acquisition capitalises on the exit of foreign oil majors from Nigeria, a trend driven by increasing operational challenges and a global shift towards cleaner energy. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) approved the sale in October 2024, enabling Seplat to finalise the deal.
The company has already paid $928 million of the purchase price, with the remaining $257.5 million deferred to December 2025, covering decommissioning and joint venture costs. According to Chief Financial Officer Eleanor Adaralegbe, the investment is expected to yield rapid returns, supported by Seplat’s growing earnings, which increased by 25% to $383 million in the first nine months of 2024.
Gas Opportunities and Nigeria’s Energy Goals
Beyond oil, Seplat is keenly focused on natural gas development. With Nigeria’s ongoing “Decade of Gas” initiative, the company sees significant potential in liquefied natural gas (LNG) and the domestic gas market. These efforts align with the federal government’s vision to diversify energy sources, reduce carbon emissions, and strengthen local industries.
Implications for Nigeria’s Economy
The revitalisation of dormant oil wells could play a crucial role in addressing Nigeria’s economic challenges. Higher domestic production will not only reduce import dependency but also boost foreign exchange earnings and create jobs in the oil and gas sector.
However, challenges remain, including infrastructure deficits, community relations, and regulatory hurdles. For Seplat’s ambitious plans to succeed, it must navigate these complexities while adhering to strict environmental standards.
Seplat Energy’s move to revive 400 oil blocks is a bold step towards strengthening Nigeria’s oil and gas industry at a time of economic uncertainty. As fuel costs remain high, increased local production could provide much-needed relief for the nation’s economy and pave the way for a more sustainable energy future.
