Seplat to invest $320m in 13 new oil wells, others

Seplat Energy PLC has disclosed plans to invest up to $320 million this year in 13 new onshore oil wells and other capital expenditure projects.

The company disclosed this in its outlook for 2025, saying “Initial 2025 capital expenditure, capex guidance of $260-320 million comprising Seplat Onshore $180-220 million, Seplat Energy Producing Nigeria Unlimited, SEPNU $80-100 million. Plan includes 13 new wells onshore, replacement of an inlet gas exchanger on East Area Project (EAP) NGL project offshore and other capex projects.”

Meanwhile, the Company said it recorded 137 per cent increase in revenue to N1.652 trillion in the operating year ended December 2024 from N696.9 billion in 2023, with cash generated from its operations rising to N567.5 billion in 2024 from N340.6 billion in the previous year.

The Company’s operating profit also rose to N647.9 billion from N163.7 billion Year-on-Year whilst profit before tax surged to N561.4 billion from N125.5 billion Year-on-Year.

In the same vein, gross profit for the Company hit N710.1 billion from N349.3 billion Year-on-Year, as the company achieved more than 11.0 million hours (2023: 8.7 million hours) without Lost Time Injury (LTI) on Seplat-operated assets in 2024.

Commenting, Roger Brown, Chief Executive Officer, said: “2024 was truly a defining year for Seplat Energy. In addition to delivering key growth projects in our existing onshore business, we closed out 2024 by completing the acquisition of SEPNU, the largest in the Company’s history, which adds significant scale and attractive low-cost growth potential. In the first few months since the acquisition, it has already become clear that there is significant prize in the offshore shallow water, operating a closed loop system from well-head production to hydrocarbon sales at the terminal.

“This year we will focus on re-opening previously shut-in wells in SEPNU, alongside another full drilling campaign for our onshore assets and we look forward to delivering first gas at ANOH. We will also accelerate the subsurface work and contracting needed to commence an infill drilling campaign at SEPNU.

Our confidence in the future trajectory for the enlarged business, combined with our strong financial position, means that we are delighted to declare a special dividend again for 2024, lifting the total dividend for 2024 to $16.5 cents per share, an uplift of 10% from 2023.”

SOURCE : VANGUARD