.As its Production surge fuels $3B investment plan
Elumelu joins board after $496m share acquisition
UGO AMADI
Seplat Energy Plc has set its sights on becoming Nigeria’s most formidable indigenous energy player, charting a clear path to 200,000 barrels of oil equivalent per day (boepd) by 2030. The company’s transformation follows the landmark acquisition of Mobil Producing Nigeria Unlimited (MPNU) and a record-breaking operational performance in 2025.
At its 13th Annual General Meeting (AGM), Seplat reaffirmed its commitment to disciplined growth and shareholder value. Shareholders approved a final dividend of 8.3 cents per share, bringing total payout for 2025 to 25 cents. Backed by an average realized oil price of $86/bbl, Seplat delivered strong cash flows while maintaining capital discipline and safety as top priorities.
Integration Delivers Immediate Gains
At its 13th Annual General Meeting (AGM), held virtually from Lagos, Seplat’s management reaffirmed its long-term growth strategy and shareholder commitment. Shareholders approved a final dividend of 8.3 cents per share, bringing total payout for 2025 to 25 cents.
Chairman Senator Udoma Udo Udoma described the MPNU acquisition as transformative. “The deal more than doubled Seplat’s production capacity and allowed us to meet our 2025 output goal ahead of schedule,” he said. The integration shifted Seplat from a primarily onshore operator to a balanced onshore-offshore player, consolidating operations under one headquarters and strengthening its base for the next growth phase.
Production Surge and Portfolio Strength
The impact was immediate. Average production rose 148% year-on-year to 131,506 boepd, with offshore assets contributing 76,023 boepd. The restart of 49 idle wells added 48,600 barrels per day to gross output.
Seplat now operates 11 blocks and 48 producing fields across onshore and shallow water acreage, positioning it as one of Nigeria’s most diversified indigenous operators.
Chief Executive Officer Roger Brown stressed that Seplat’s growth is not “for its own sake” but responsibly financed, safely delivered, and designed to generate sustainable cash flow.
Over the next five years, Seplat plans to invest up to $3 billion in drilling, maintenance, and infrastructure, while targeting $5–6 billion in post-tax operating cash flow.
Also, the Chief Operating Officer and the Chief Financial Officer reaffirmed the Company’s priorities: Safety remains Seplat Energy’s foremost operational priority, Strong internal controls and financial discipline underpin performance and Continued focus on capital efficiency and cost management
Supported by an average realized oil price of approximately $86/bbl, the Company delivered robust cash flows while maintaining: Disciplined capital allocation , Strong commitment to host communities and Continued investment in its people and operations
At an average realized oil price of $86/bbl in 2025, Seplat delivered strong cash flow while maintaining capital discipline and safety as top priorities.
Between 2026 and 2030, Seplat intends to return at least $1 billion to shareholders in dividends, provided oil prices remain above $65 per barrel. Supported by an average realized oil price of $86/bbl in 2025, the company delivered strong cash flows while maintaining capital discipline and safety as top priorities.
Shareholders commended the smooth integration of offshore operations, consistent dividend policy, and stronger cash generation.
However, Shareholders commended the smooth integration of the offshore business, consistent dividend policy, and stronger cash generation.
Gas for Power and National Impact
With the ANOH gas project advancing, Seplat is positioning itself as a key supplier to Nigeria’s domestic power market while scaling up export output. This dual strategy underscores its role in national energy security while tapping into global demand.
With its expanded asset base, robust cash flow, and shareholder-friendly policies, Seplat is positioning itself not just as a national champion but as a regional powerhouse in Africa’s energy future.
As Elumelu joins the board after the $496 m share acquisition
Interestingly, billionaire banker and entrepreneur Tony O. Elumelu has formally joined the board of Seplat Energy Plc, marking the culmination of one of the most significant shifts in indigenous ownership of Nigeria’s oil and gas sector in recent years.
Shareholders elected Elumelu as a Non-Executive Director at Seplat’s 13th Annual General Meeting on Wednesday, months after his investment vehicle, Heirs Energies, acquired a 20.07% stake in the company for roughly $496 million.
The move places Africa’s most prominent proponent of “Africapitalism” at the centre of Seplat’s strategy as the company pursues ambitious production and dividend targets.
From Shareholder to Boardroom Influence
The acquisition, executed at 305 pence per share through Heirs Holdings’ subsidiary Heirs Energies, made the group Seplat’s single largest shareholder.
The deal involved the purchase of about 120.4 million shares from French energy giant Maurel & Prom and was structured with an irrevocable letter of credit. It was backed by African multilateral institutions including Afreximbank and the Africa Finance Corporation, a signal of growing continental support for indigenous participation in the energy sector.
Elumelu’s election to the board formalises that influence. As a Non-Executive Director, he will focus on governance oversight, shareholder representation, and strategic guidance rather than day-to-day operations.
Seplat Board Chairman Udoma Udo Udoma said Elumelu’s entry validates the company’s trajectory. “You know you are successful when everybody wants to buy your shares. And so, it’s a sign of our success,” Udoma said. “When Heirs and Tony bought into Seplat… he said he’s buying because he likes the company. And so, he’s very welcome to the company. It’s good to have somebody with this broad experience and expertise on our board.”
A Push for Indigenous Ownership
The deal reflects a broader trend of Nigerian and African investors taking larger stakes in oil and gas assets divested by international oil companies.
For Seplat, the entry of Heirs Energies consolidates its position as a leading indigenous operator at a time when Nigeria is pushing to boost crude production and retain more value locally.
Elumelu has long argued that African capital should drive African development. His Heirs Holdings portfolio spans banking, power, insurance, and now energy production through Heirs Energies and Heirs Oil & Gas.
The Seplat stake gives him a platform to influence one of Nigeria’s largest listed energy firms as it navigates rising production costs, regulatory changes, and the global energy transition.
Udoma used the AGM to outline Seplat’s growth agenda. The company is targeting 200,000 barrels per day from its own share of joint venture assets, and 500,000 bpd in overall joint venture production.“We believe we’re on track to achieve that,” he said.
“Importantly for our shareholders, we also believe that we’re on track to deliver value to them in terms of dividends. So, we have committed ourselves to delivering one billion U.S. dollars in dividends over the next four or five years.” Achieving that will require capital discipline, operational efficiency, and stability in Nigeria’s security and regulatory environment — areas where Elumelu’s private and public sector network could prove valuable.
Elumelu’s board appointment does more than add a high-profile name to Seplat’s roster. It signals investor confidence in Seplat’s assets and management, and reinforces the role of African finance in funding Africa’s energy future.
For Nigeria’s indigenous oil industry, the transaction sets a benchmark for scale and financing structure. With multilateral backing and a structured payment plan, it shows how local players can compete for and manage large-scale assets once held by international majors.
Whether Elumelu’s presence translates into faster decision-making, stronger governance, and better shareholder returns will unfold in the coming quarters. For now, his election closes the loop on a $496 million bet that Nigeria’s energy sector still holds substantial upside — and that African investors are ready to claim it.
Conclusively, Seplat Energy’s bold target of 200,000 boepd by 2030 signals a new era for Nigeria’s indigenous energy sector. By combining disciplined execution with shareholder rewards, the company is charting a path that balances growth, resilience, and national impact.
