Seplat Completes Conversion of Onshore Assets

Seplat Energy has completed the conversion of its onshore oil and gas assets, marking a significant milestone in the company’s transition to the new regulatory framework governing Nigeria’s petroleum industry. The development follows regulatory approvals granted under the Petroleum Industry Act and reflects broader efforts by indigenous operators to align legacy assets with the country’s reformed oil and gas laws.

The company said the conversion covers its onshore oil mining leases and associated assets, effectively migrating them from the previous joint venture and oil mining lease structures to the new licensing regime provided for under the Petroleum Industry Act. This process is aimed at ensuring regulatory clarity, operational continuity and long-term sustainability of upstream operations.

Industry observers note that asset conversion has become a critical step for operators following the enactment of the Petroleum Industry Act, which introduced new fiscal, regulatory and governance frameworks for Nigeria’s oil and gas sector. By completing the conversion, Seplat has positioned itself to operate fully within the new legal environment, reducing uncertainty around asset ownership and operational rights.

Seplat explained that the completion of the conversion process involved extensive engagement with regulators and relevant government agencies. The company worked closely with the Nigerian Upstream Petroleum Regulatory Commission to ensure compliance with all requirements, including revised fiscal terms, environmental obligations and host community provisions.

According to the company, the conversion provides greater certainty for investment planning and capital allocation. With clearer fiscal terms and regulatory expectations, Seplat said it can better plan field development, production optimisation and gas expansion projects across its asset portfolio.

Analysts say the development is particularly important given Seplat’s role as one of Nigeria’s leading indigenous energy companies. The firm operates several onshore oil and gas blocks in the Niger Delta and has been expanding its gas operations to support domestic power generation and industrial use.

The completion of asset conversion is also expected to strengthen Seplat’s relationship with host communities. Under the Petroleum Industry Act, operators are required to establish host community development trusts aimed at promoting social and economic development in oil-producing areas. Seplat said it remains committed to engaging communities transparently and supporting sustainable development initiatives.

Industry experts point out that the clarity provided by asset conversion could help unlock new investment into Nigeria’s onshore sector. Many investors had previously expressed concerns about regulatory uncertainty and legacy issues surrounding joint ventures and oil mining leases. The transition to the new framework is seen as a step toward improving investor confidence.

Seplat noted that the conversion does not disrupt ongoing operations, as production activities continue across its fields. The company said it remains focused on maintaining output, improving operational efficiency and minimising downtime, even as it adapts to the new regulatory environment.

The company also highlighted the importance of gas in its growth strategy. With Nigeria pushing to monetise its vast gas resources and reduce reliance on oil revenues, Seplat has increased its focus on gas development and processing. The completion of asset conversion is expected to support these plans by providing a stable regulatory foundation.

Market watchers say the development could have positive implications for Seplat’s financial performance in the medium to long term. Clearer fiscal terms and improved governance structures may enhance profitability and reduce compliance risks, though operators will also face new obligations under the Petroleum Industry Act.

The broader oil and gas industry is closely watching how indigenous operators navigate the transition. Several companies are still at different stages of asset conversion, and Seplat’s progress is seen as a benchmark for others seeking to complete the process.

Regulators have repeatedly emphasised that asset conversion is not optional under the Petroleum Industry Act, urging operators to comply within stipulated timelines. The completion by Seplat signals progress in the industry’s gradual adjustment to the new regime.

Energy analysts say that while challenges remain, including infrastructure constraints and security issues in the Niger Delta, regulatory reforms offer an opportunity to reset the sector. They argue that successful implementation of the Petroleum Industry Act could improve transparency, efficiency and revenue generation.

For Seplat, the conversion is viewed as part of a broader transformation aimed at strengthening its position as a leading indigenous energy player. The company has consistently stated its ambition to grow production, expand gas supply and contribute to Nigeria’s energy security.

The development also comes at a time when Nigeria is seeking to boost oil output and attract fresh investment into the upstream sector. With global energy markets facing volatility, the government has been pushing reforms to make the country more competitive.

As Seplat moves forward under the new framework, stakeholders will be watching how the company leverages regulatory clarity to drive growth, manage costs and deliver value to shareholders, communities and the broader economy.

In the coming months, attention is expected to shift to how converted assets perform under the new fiscal terms and how quickly operators can translate regulatory reforms into tangible improvements in production and investment.

Overall, Seplat’s completion of onshore asset conversion represents a significant step in Nigeria’s ongoing petroleum sector reform, highlighting both progress made and the work still required to fully realise the objectives of the Petroleum Industry Act.