"Seplat to Consider Selling a 10% Stake in the SEPNU Joint Venture to NNPC; Shares 5-Year Objectives"
Seplat Energy, a leading independent oil and gas company in Africa, has announced a substantial increase in its 2C resources and production targets, as well as the introduction of a new dividend policy.
According to the company's latest announcement, its 2C resources surged by 282% to 1,262.0 MMboe on a group-wide basis. This significant growth was particularly evident in the company's offshore assets, where resources increased by 378% to 1,178.2 MMboe. The update, provided in a new Competent Person's Report (CPR) commissioned from Ryder Scott Company, L.P., confirms these increases compared with previous assessments.
The report, however, only looks at the new offshore assets, while Seplat's onshore reserves remain the same. The competent person who conducted the updates for Seplat Energy's offshore facilities is Gaffney, Cline & Associates.
Seplat Energy also expects to grow production to around 200,000 boepd by 2030, a 50% increase from mid-2025. This ambitious production target is part of the company's five-year operational targets, which will be introduced at a Capital Markets Day on 18 September 2025.
In addition to production growth, Seplat Energy is aiming to return 40%-50% of Free Cash Flow (FCF) to investors over the 2026-2030 period through a new dividend policy. The company expects to generate US$5-6 billion in cash flow over this period, representing 2.5-3 times growth compared with the previous five years. Based on this five-year forecast, cumulative cash dividends could reach $1.0 billion, assuming Brent crude averages above $50 per barrel.
Furthermore, Seplat Energy is in discussions regarding the potential sale of a 10% interest in the NNPC/SEPNU Joint Venture (JV) to the Nigerian National Petroleum Company Limited (NNPC). If the discussions are successful, Seplat Energy Producing Nigeria Unlimited (SEPNU) would hold a 30% stake in the JV, with NNPC holding 70%. Seplat Energy would continue as the operator of the JV, if the discussions are finalized.
The discussions are ongoing and subject to both parties reaching a mutual agreement and the successful execution of a formal deal. If the deal goes through, it would mark a significant step in Seplat Energy's growth strategy.
The company's offshore asset estimates have significantly increased following the December 2024 acquisition. Total 2P plus 2C reserves and resources increased by 89% to 2,305.2 MMboe on a group-wide basis. Combined 2P and 2C figures for offshore assets increased by 170% to 1,729.9 MMboe.
This news marks an exciting time for Seplat Energy, with significant growth in resources, production targets, and a new dividend policy. The company's ambitious plans and strategic moves position it well for continued growth and success in the future.
