- Seplat Energy plans to increase its daily oil production from 50,000 bpd to 120,000 bpd by revitalizing over 400 dormant wells in Nigeria.
- Following its $1.28 billion acquisition of ExxonMobil’s assets, Seplat aims to rejuvenate idle wells through facility upgrades and equipment repairs to boost Nigeria’s oil output.
Seplat Energy is taking decisive steps to revive over 400 dormant oil wells in Nigeria, aiming to boost production significantly. According to an interview with Financial Times, key executives from the company, Eleanor Adaralegbe, the Chief Financial Officer (CFO), and Samson Ezugworie, the Chief Operating Officer (COO), outlined the ambitious plans for rejuvenating the country’s idle oil wells.
Adaralegbe revealed that Seplat’s strategy includes ramping up the company’s daily production from the current 50,000 barrels per day (bpd) to approximately 120,000 bpd within the next six months. The London-listed firm believes that the underinvestment in these assets has left significant room for growth and development. “The assets have had very minimal investments until now. We expect that once we come in, there will be an opportunity to grow that much further,” she explained.
This plan follows Seplat’s acquisition of ExxonMobil’s assets in Nigeria, valued at $1.28 billion, marking a key milestone for the company. The deal, finalized in late 2024, allows Seplat to expand further its footprint in the Nigerian oil and gas industry, including rejuvenating numerous underutilized oil wells.
Samson Ezugworie, COO of Seplat, also discussed the company’s challenges and approach to revitalizing Nigerian oil assets. He pointed out that out of the more than 600 wells drilled by Seplat, less than a third, or approximately 200, are currently in production. Ezugworie emphasized the need for substantial time and investment to bring many idle wells back into production. “We have significant idle wells that need to be rejuvenated and brought back into production within a short time,” he said.
The company has identified key measures to restart these wells, including upgrading facilities, repairing equipment, and optimizing well completions. These actions are expected to restore many wells that have been inactive for several years due to a lack of investment.
Seplat’s plan to rejuvenate Nigeria’s idle wells is part of its broader strategy to increase its oil output and solidify its position as a leading energy producer in the country. By tapping into these previously underdeveloped assets, the company aims to enhance its profitability and contribute to Nigeria’s oil production capacity, which has declined recently.
Seplat’s efforts to restore these wells reflect a broader trend in Nigeria’s oil sector, where companies are investing in revitalizing idle assets to offset declining production levels and meet the country’s growing energy demands.