Seplat Energy Plc, the Nigerian oil and gas company that acquired ExxonMobil’s onshore and shallow-water assets in a landmark $1.28 billion transaction, is showing that strategic asset revival can deliver both immediate production gains and long-term value.
As part of an aggressive turnaround programme, the Lagos- and London-listed company successfully restored 49 previously idle wells in 2025, with plans to bring an additional 50 wells back online in 2026. According to Seplat’s latest audited financial statement, the restoration initiative has already delivered substantial results, adding 48,600 barrels of oil per day (bopd) in gross production at an estimated cost of $60 million—highlighting the capital efficiency of reviving existing assets compared with new greenfield drilling.
Driving Offshore Production
The idle well restoration programme has formed the cornerstone of Seplat’s offshore growth. Average daily working interest production for offshore assets rose to 76,023 barrels of oil equivalent per day in 2025, representing approximately 9 percent year-on-year growth on a pro-forma basis. Management attributed the strong performance to the idle well recovery campaign and improved asset reliability, though it noted that planned maintenance and a temporary outage at the Yoho platform—caused by a third-quarter fire—moderated the full impact of gains.
The Yoho platform is scheduled to resume production in the second quarter of 2026, with expected output of around 20,000 bopd, providing a further boost to the company’s offshore performance. Combined with the second phase of the idle well programme, Seplat is poised to sustain growth while executing a significant capital deployment plan.
Expanding the Programme: 50 Wells in 2026
Seplat has signaled that it is ready to scale the idle well initiative. The company plans to restore 50 additional wells in 2026, extending the programme into a second phase. While the firm acknowledges that production gains per well are likely to diminish as the idle well portfolio matures, executives note that the economics remain compelling, with material contributions to both output and financial metrics.
Chief Executive Roger Brown has described the strategy as part of a broader transformation of offshore assets that were historically under-invested under previous ownership. “Our offshore investments are witnessing renewed vigour, unlocking capacity and enhancing reliability,” he said, emphasizing the immediate production and operational benefits of the programme.
Financial Transformation Supports Growth
The idle well campaign sits within a larger story of financial progress. In 2025, Seplat’s revenue rose 144 percent year-on-year to $2.7 billion, despite a 12 percent decline in oil prices. Adjusted EBITDA reached $1.27 billion, reflecting a 47 percent margin, while operating cash flow stood at $1.17 billion. Net debt fell to $673 million, representing 0.5 times net debt-to-EBITDA. Overall group production rose 148 percent to 131,506 barrels of oil equivalent per day, marking the first full year of consolidated operations following the MPNU acquisition.
Looking Toward 2030
Seplat has laid out ambitious production targets for the coming decade. The company aims to grow working-interest production from roughly 134,000 boepd in mid-2025 to over 200,000 boepd by 2030, supported by a five-year capital expenditure programme of up to $3 billion. Plans include drilling 120 to 150 new wells and validating up to three new gas projects.
In 2026, growth will be driven by higher-value natural gas liquids and natural gas, particularly as the ANOH Gas Plant approaches full capacity and an expansion at the Oso facility doubles offshore gas sales. Production guidance for the year stands at 135,000 to 155,000 boepd, reflecting roughly a 10 percent uplift at the midpoint compared with 2025.
Seplat also confirmed plans to deliver aggregate shareholder distributions of $1 billion over the next five years, paying out 40 to 50 percent of free cash flow, with a minimum guaranteed annual distribution of $120 million, or $0.20 per share.
By combining operational efficiency, strategic investment, and disciplined capital management, Seplat Energy is positioning itself to transform historically under-utilized offshore assets into a resilient and growth-focused portfolio—offering a model for how legacy oil and gas holdings can be revitalized in today’s challenging energy environment.