Seplat Energy Plc has outlined an ambitious medium-term growth plan that will see its working interest production increase to approximately 200,000 barrels of oil equivalent per day (boepd) by 2030.
The target represents a 50 percent rise from the company’s reported first half 2025 production levels.
The announcement was made on Thursday during Seplat’s Capital Markets Day (CMD) in Lagos and London, where the company also disclosed that it expects to generate between $5 billion and $6 billion in cumulative cash flow from operations over the 2026–2030 period. This marks a 2.5 to 3.0 times increase compared to the previous five-year cycle (2020–2024).
Investment and Operational Plans
To achieve these targets, Seplat plans to reinvest about 50 percent of its operating cash flow, translating into capital expenditure of between $2.5 billion and $3.0 billion.
The investments will support the drilling of 120 to 150 new wells and the sanctioning of up to three gas development projects.
The company also aims to reduce its operating cost per barrel of oil equivalent from $12.5/boe in the first half of 2025 to $10/boe by the end of the plan period. Seplat said this will be achieved by leveraging cost efficiencies and scaling up production.
Seplat noted that its balance sheet remains robust, with net leverage expected to remain between 0.5x and 1.5x, provided oil prices average above $50 per barrel. The company’s long-term planning is based on assumptions of $65/bbl for crude and condensates, $39/bbl for NGL/LPG, and $2.75/mcf for gas.
Dividend Policy
Alongside its growth targets, Seplat introduced a new dividend framework that commits to return between 40 and 50 percent of free cash flow to investors across the 2026–2030 cycle. The policy includes a guaranteed minimum dividend of $120 million annually, equivalent to 20 cents per share, provided Brent averages above $50 per barrel.
The company also announced a 10 percent increase in its third quarter 2025 dividend to 5.0 cents per share, reflecting the new base commitment.
Reserves and Resources Upgrade
Seplat presented the findings of a new Competent Person’s Report (CPR) conducted by Ryder Scott Company, which confirmed substantial increases in reserves following the acquisition of Mobil Producing Nigeria Unlimited in December 2024.
Group-wide, proven and probable (2P) reserves rose by 18 percent to 1.04 billion boe, while 2C resources surged 282 percent to 1.26 billion boe. Combined 2P and 2C reserves and resources increased 89 percent to 2.3 billion boe, providing what the company described as a “strong foundation for growth.”
NNPC Discussions
Seplat also confirmed it is in talks with the Nigerian National Petroleum Company Limited (NNPC) over the potential sale of a 10 percent interest in their joint venture. If concluded, NNPC would hold 70 percent while Seplat retains 30 percent and continues as operator. The company assured investors that the dividend policy will remain unchanged under this scenario.
CEO’s Comment
Roger Brown, Chief Executive Officer of Seplat Energy, said the strategy reflects the company’s strengthened position following the acquisition of its offshore assets.
“Today we set out our roadmap to 2030, our vision for the medium term which will see us materially grow production and cash flow to drive significantly enhanced shareholder returns,” Brown said.
He added that Seplat’s 2P reserves now exceed one billion barrels of oil equivalent, while combined 2P+2C resources have grown to 2.3 billion boe. “This provides Seplat Energy with a fantastic foundation from which we can create meaningful value for our shareholders and further contribute to Nigeria’s future prosperity,” he said.
Outlook
Seplat Energy’s expansion strategy positions it as a key player in Nigeria’s energy sector and a leading African independent. With strengthened reserves, significant cash flow potential, and a new shareholder return policy, the company is seeking to consolidate its role as an African energy champion while aligning with Nigeria’s long-term growth prospects.