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Olugbemi. Adeyinka Ogunleye
3 months ago
Overview
Seplat to Revive 400 Idle Oil Wells, Set to Hit over 120,000 bpd after Buying Mobil Assets
Nigeria’s Seplat Energy plans to revive 400 idle oil wells to meet its over 120,000 barrels per day crude production in the coming months, the company’s top management has said. This is coming as the Nigerian company that took over the local operation of ExxonMobil said that it intends to more than double production within six months, after moving in to take advantage of the retreat of foreign majors from the county’s onshore oil sector. London-listed Seplat completed its purchase of a range of oil and gas assets owned by the US energy giant in December after a delay of more than two years by Nigerian regulators to sign off on the deal, the Financial Times reported. Seplat’s senior management told FT that the plan was to more than double output from about 50,000 barrels a day to roughly 120,000 bpd over the six-month period. “The assets have had very minimal investments until now,” Seplat’s Chief Financial Officer Eleanor Adaralegbe told the Financial Times in an interview. “We expect that once we come in there will be an opportunity to grow that much further,” she added. The $1.28bn acquisition of Mobil Producing Nigeria Unlimited (MPNU) makes Seplat one of the biggest domestic producers with an asset base of 11 onshore oil blocks, 48 oil and gas fields, three export terminals and five gas processing facilities.
