December 29, (THEWILL) — Seplat Energy Plc will play a major role in Nigeria’s economic development in 2026, especially towards advancing local content implementation and optimum gas production. The dual- (London/Lagos) listed energy corporate announced major milestones recently that point to this fact.
In a corporate filing disclosure on the Nigerian Exchange in December 2025, the company said its subsidiaries, Seplat West and Seplat East, have switched their onshore oil assets to the new Petroleum Industry Act system.
The switch, which replaces the old Petroleum Profit Tax regime, covers assets formerly under OMLs 4, 38, 41, and 53 that produced an average of 42,591 barrels per day in the first nine months of 2025, roughly 31 percent of the company’s total output.
Seplat said the PIA conversion benefits were already included in its medium-term guidance shared at the September 2025 Capital Markets Day, as the company targets its five-year goals.
The 5-Year Plan
At its Capital Markets Day on 18 September 2025, Seplat Energy announced new 2026–2030 targets, aiming to grow production to about 200,000 boepd by 2030, a 50 percent increase from mid-2025.
The company expects to generate US$5–6 billion in cash flow over the period, supported by higher capital spending and ongoing operational and financial efficiencies, representing 2.5–3 times growth compared with the previous five years.
Seplat also plans to invest US$2.5–3 billion, including drilling 120–150 new wells and sanctioning up to three gas projects, while aiming to reduce operating costs from $12.5/boe to $10/boe.
The MPNU acquisition
This was a build-up to the milestone earlier unveiled in the second quarter of 2025: Seplat Energy had reported an 11 percent increase in total production following the acquisition of Mobil Producing Nigeria Unlimited (MPNU), now renamed Seplat Energy Producing Nigeria Unlimited (SEPNU).
According to the report disclosed in the company’s audited financial results for the year ended December 31, 2024, Seplat’s onshore assets averaged 48,618 barrels of oil equivalent per day (boepd) in 2024, a 2 percent increase from 47,758 boepd recorded in 2023.
Following the acquisition, Seplat’s independently audited 2P reserves rose by 85 percent to 886 million barrels of oil equivalent (MMboe), up from 478 MMboe in 2023. The company’s total 2P+2C reserves also increased by 125 percent to 1,217 MMboe, reinforcing its position as a leading player in Nigeria’s energy sector.
Local Content Dimension
Industry experts emphasise that the strategic acquisition of the formerly owned international oil companies’ (IOC) facilities by Nigerian investors marks a landmark achievement by the indigenous oil and gas operators. They also consider it a huge opportunity for the Nigerian Content Monitoring and Development Board (NCMDB).
The primary objective of NCDMB is to promote and develop Nigerian content in the Nigerian oil and gas industry, ensuring the growth and utilisation of local capabilities, goods, and services.
This year, April 22, 2025, marked the 15th anniversary of the establishment of the Nigerian Content Policy through the Local Content Law signed by former President Goodluck Jonathan on April 22, 2010.
The expertise acquired by the Nigerian operators in Engineering, Procurement, Installation, Operation and Maintenance (EPICOM) space equips them to undertake a wide range of technical jobs in the regions.
These include installation and servicing of the metering system, construction of loading bay, LPG installation, tank farm construction, installation of actuators, colons, mechanical seals, valves, steam trap and other process equipment.
The NCDMB is partnering with educational institutions and skill acquisition centres towards equipping Nigerian youths for the challenge of managing the facilities acquired by indigenous operators.
For instance, the NCDMB and Shell Petroleum Development Company (SPDC), with its joint venture (JV) partners, last year unveiled a world-class engineering design studio and an information and communication technology (ICT) hub at the Federal University of Technology, Owerri (FUTO).
Data by the NCDMB revealed that local content hit 56 per cent at the end of 2023, which translates into in-country retention of 56 per cent of oil and gas industry yearly spend on operations.
Today, the NCDMB is on the fast lane to the 70 percent local content target in 2027 ensuring that equipment and tools as well as services required for oil and gas operations are made and procured in Nigeria.
Renewed gas focus
Gas is playing an increasingly important role in Nigeria’s oil and gas market. With rising domestic demand for power generation, industrial use, and export opportunities, gas development is gaining strategic importance. The PIA has introduced incentives aimed at unlocking gas investments, encouraging upstream producers to prioritize gas processing and infrastructure expansion.
Gas-focused projects are supporting long-term volume growth while aligning with Nigeria’s transition toward cleaner and more diversified energy sources.
The Nigeria oil and gas market reached 1.44 MMT in 2025 and is projected to grow at a 5.30 percent Compound Annual Growth Rate (CAGR), reaching 2.41 MMT by 2035, driven by local content reforms and rising private investment. (CAGR is the rate of return that an investment would need to have every year in order to grow from its beginning balance to its ending balance, over a given time interval.)
Local content development remains a core pillar of Nigeria’s oil and gas strategy. Policies aimed at increasing local participation in engineering, fabrication, logistics, and services are stimulating investment across the value chain. This has led to the growth of local service providers, fabrication yards, and technical support infrastructure.
Infrastructure development is particularly evident in gas processing zones, where investments are being directed toward gas gathering, processing, and transportation facilities. These developments support Nigeria’s broader goal of monetizing natural gas resources while reducing flaring and improving supply reliability.
Sapele Integrated Gas Plant was commissioned and achieved first commercial gas sales in February 2025, with the plant delivering high quality processed gas, and condensate yields of c.2 kbopd.
Additionally, the ANOH gas plant is on track to test with third-party dry gas in H1 2025, while tunneling operations on the OB3 pipeline resumed in Q1 2025.
“Seplat’s success paves the way for expanded local content initiatives. As an industry leader, its operations will impact on Nigeria’s quest for a one trillion-dollar economy by 2030”, said Engr Ishmael Akubuiro, a Port Harcourt-based oil and gas operator.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
