Seplat Energy has successfully completed its $800 million acquisition of Mobil Producing Nigeria Unlimited (MPNU), a move that significantly enhances its business prospects and solidifies its position as a leading independent energy company in Nigeria. This strategic acquisition, finalized in December 2024, was funded entirely through cash and new debt facilities, ensuring no dilution of shareholder stakes.

Key Takeaways

• Seplat’s acquisition of MPNU creates a combined production capacity of 118,000 barrels of oil equivalent per day.
• Reserves have increased by 85%, reaching 886 million barrels of oil equivalent.
• The company plans to focus on expanding both onshore and offshore operations.
• A core dividend of $3.6 cents per share has been declared for Q4 2024, marking a 10% increase from the previous year.

Strategic Impact of the Acquisition

During a recent press briefing following the company’s yearly general meeting in Lagos, Seplat’s Chairman, Udoma Udo Udoma, emphasized the transformative impact of integrating MPNU’s assets, now rebranded as Seplat Energy Producing Nigeria Unlimited (SEPNU). This acquisition is expected to create a robust energy powerhouse in Nigeria, enhancing production capabilities and reserves significantly.

Udoma expressed optimism about Seplat’s future, highlighting the company’s commitment to increasing production, maintaining infrastructure integrity, and leveraging growth in its gas division. He also announced plans to unveil a broader operational strategy during the Capital Markets Day scheduled for the third quarter of 2025, focusing on social development, environmental responsibility, and maximizing stakeholder returns.

Financial Performance and Dividends

Seplat’s Board has approved a core dividend of $3.6 cents per share for the final quarter of 2024, bringing the total annual dividend to $13.2 cents per share. This represents a 10% increase from 2023, reflecting the company’s strong performance and positive outlook. Additionally, a special dividend of $3.3 cents per share has been declared, further showcasing Seplat’s financial health.

Shift Towards Offshore Operations

Chief Executive Officer Roger Brown highlighted a strategic shift towards offshore operations, with approximately 70% of Seplat’s production now derived from offshore assets. This diversification is expected to enhance revenue stability and reinforce Seplat’s position in the Niger Delta region. Brown also noted the company’s commitment to exploring opportunities within its new Energy division, particularly in power generation and renewable energy, aligning with long-term growth strategies.

Future Production Goals

Chief Operating Officer Samson Ezugworie reported a strong performance for 2024, attributing significant contributions to the company’s results from the newly integrated SEPNU assets. Seplat surpassed its production guidance, achieving a total working interest production of 52,947 barrels of oil equivalent per day (boepd) for the year. Looking ahead to 2025, the company has set a production guidance of 120,000–140,000 boepd, with plans to optimize existing wells, expand drilling activities, and increase gas production through ongoing projects at the Sapele Integrated Gas Plant.

Ezugworie concluded by stating that Seplat Energy is well-positioned for continued growth, with a clear focus on operational sustainability, expanding production capabilities, and contributing to the development of Nigeria’s energy sector.

Sources

• $800m acquisition of MPNU strengthens Seplat’s business prospect, The Guardian Nigeria News.