Seplat Energy Targets $1 Billion in Shareholder Dividends
Seplat Energy Ltd has set an ambitious objective to distribute $1 billion in dividends to shareholders over the next four to five years. This initiative aims to uphold investor returns following the successful consolidation of Mobil Producing Nigeria Unlimited’s assets.
Chairman’s Commitment to Growth
This announcement was made by Senator Udo Udoma, Seplat’s Chairman, during a media briefing in Lagos after the company’s Annual General Meeting (AGM). Udoma emphasized that the firm is determined to not only meet but also triple its attributable production in the medium term, targeting a production level of 500,000 barrels of crude oil per day across its joint ventures.
Production and Dividend Forecast
Udoma conveyed confidence in the company’s trajectory, stating, “We are committed to delivering US$1 billion in dividends over the next four to five years, and we are on track to do so.” This forecast follows Seplat’s ongoing efforts to capitalize on its acquisition and integration of Mobil Producing Nigeria Unlimited, now known as Seplat Energy Producing Nigeria Unlimited. The Chairman noted that both the acquisition and subsequent business integration were completed on schedule, as previously communicated to shareholders.
Dividend Approval and Cost Management Strategies
During the meeting, shareholders approved a total dividend of N113.78 per share for the 2025 financial year. This figure comprises a final dividend of N68.54 per share and a special dividend of N45.24. In a bid to enhance shareholder returns, Seplat has also streamlined its operations by consolidating its office space into a single headquarters in Lagos, a move aimed at reducing operating costs.
Business Expansion and Resource Management
Seplat Energy’s Chief Executive Officer, Roger Brown, highlighted that the merger significantly bolstered the company’s operations and strengthened its financial position. The new entity now oversees 11 oil blocks, including seven onshore and four offshore assets, with 48 active oil fields and five gas plants. Currently, Seplat holds 1.001 million barrels in 2P reserves, equally divided between oil and gas, amounting to approximately 2.5 billion barrels when including total reserves and contingent resources. “The merger brings scale. We’re a bigger, more robust company,” Brown remarked.
Production Goals and Safety Initiatives
Seplat is aiming for medium-term production targets of 200,000 barrels per day attributable and 500,000 barrels per day at the joint venture level. At current output levels, the company estimates an oil production lifespan of about 20 years, with gas reserves expected to outlast that period. To foster growth, Seplat intends to significantly expand its onshore gas business, which is anticipated to generate substantial value for the future.
Operational Excellence and Community Engagement
Chief Operating Officer Samson Ezgwory outlined a production target of 125,000 to 155,000 barrels per day for 2026. Maintaining a focus on safety and asset integrity, he noted that the company has achieved zero fatal accidents since completing business integration. Moreover, regular gas flaring at its onshore operations is projected to be fully addressed by the end of 2025. Seplat also plans to rehabilitate around 50 dormant wells in 2025 and restart another 48 by year-end, aiming to enhance output in a cost-effective manner.
In the first half of 2025, Seplat successfully reduced pipeline losses to 3.8% due to improved collaboration with federal authorities and security agencies. The company has a commitment to local employment, maintaining over 99 percent participation of its Nigerian workforce, while also investing heavily in community initiatives. This includes graduate recruitment, vendor development, and healthcare and educational programs targeted at host communities.
Board Changes and Shareholder Optimism
During the AGM, shareholders welcomed the appointments of Tony Elumelu as a non-executive director and Larry Etta as an independent non-executive director, expressing confidence that these changes will enhance the company’s value. Shareholder Dr. Faruq Usman praised Seplat for its strong financial performance and noted that the era of increased dividends has brought joy to investors, especially as the company’s share price has surpassed the 10,000 Naira mark.
Another shareholder, Bisi Bakare, commended Seplat for its robust revenue growth amid the macroeconomic challenges facing the oil and gas sector. He also echoed support for the new board appointments, believing Elumelu’s expertise will be invaluable in delivering shareholder benefits.
