Seplat Energy commenced 2025 on a high note, registering a significant surge in hydrocarbon production during the first quarter. The company’s average daily production reached 131,561 barrels of oil equivalent per day (boepd), a remarkable 167% increase compared to the 49,258 boepd produced in the same period of 2024. This impressive performance surpassed the midpoint of the company’s projected guidance for 2025, which ranged between 120,000 and 140,000 boepd. This substantial increase demonstrates the effectiveness of Seplat Energy’s operational strategies and its ability to capitalize on market opportunities. The robust production figures underscore the company’s growing influence in the energy sector and position it for continued growth throughout the year.
The surge in production can be attributed to various factors, including the strong performance of the Oben Gas Plant and the initial contributions from the newly commissioned Sapele Gas Plant. Onshore production contributed 56,196 boepd, exceeding both the corresponding quarter’s output in 2024 and the company’s 2025 guidance. This onshore growth highlights the success of Seplat Energy’s onshore operations and the company’s commitment to maximizing production from its existing assets. The Sapele Integrated Gas Plant commenced commercial operations in February 2025, further bolstering Seplat’s production capacity and delivering high-quality processed gas and condensate yields of approximately 2,000 boepd. The successful commissioning of this plant marks a significant milestone for Seplat Energy, diversifying its product portfolio and strengthening its presence in the gas market.
Seplat Energy Producing Nigeria Unlimited (SEPNU), a subsidiary of Seplat Energy, played a crucial role in the overall production increase, contributing 75,365 boepd. This output, within the company’s guidance, was comprised of 88% crude and condensate, 4% natural gas liquids (NGLs), and 8% gas. The diverse product mix underscores SEPNU’s ability to extract and process various hydrocarbon resources, contributing to Seplat Energy’s overall revenue streams. Furthermore, the SEPNU idle well restoration program significantly boosted production, adding 11,000 barrels of oil per day (bopd) gross joint venture production from the initial ten wells brought back online. This program demonstrates Seplat Energy’s commitment to optimizing its existing assets and maximizing production efficiency.
While production soared, operational costs also witnessed an increase. The unit production operating cost rose to $12.6/boe from $9.5/boe in the first quarter of 2024. However, this figure remained below the projected range of $14-$15/boe, primarily due to the timing of planned maintenance activities. Despite the increase in operating costs, Seplat Energy’s robust production growth ensured a healthy cash flow from operations. The company generated $306.5 million in cash from operations, a substantial improvement from the $16.8 million recorded in the first quarter of 2024. This significant increase in cash flow reflects the positive impact of higher production volumes on the company’s financial performance. Capital expenditure, on the other hand, decreased to $40.2 million from $47 million in the previous year, indicating a more disciplined approach to capital allocation.
Looking ahead, Seplat Energy plans to ramp up onshore drilling activity starting in the second quarter of 2025. This strategic move aims to further boost production and capitalize on the favorable market conditions. The company’s commitment to continued investment in exploration and production activities reinforces its focus on long-term growth and its confidence in the potential of its assets. In addition to operational updates, Seplat Energy also announced changes to its board of directors. Mr. Bello Rabiu, the Senior Independent Non-Executive Director, and Mr. Babs Omotowa, the Independent Non-Executive Director, resigned from their positions following their appointments to the Nigerian National Petroleum Company Limited (NNPC) board. Mrs. Bashirat Odunewu was subsequently appointed as the new Senior Independent Non-Executive Director.
Roger Brown, the Chief Executive Officer of Seplat Energy, expressed his satisfaction with the company’s positive start to 2025. He emphasized the focus on integrating the combined companies following recent acquisitions and highlighted the progress made in this area. Mr. Brown underscored the potential benefits of leveraging the combined expertise of the onshore and offshore workforce to drive future growth and success. The successful integration of the acquired companies is a key priority for Seplat Energy, as it seeks to generate synergies and unlock the full potential of its expanded operations. The company’s strong performance in the first quarter, coupled with its strategic plans for the remainder of the year, positions Seplat Energy for continued growth and success in the dynamic energy landscape.
