Seplat Energy, as reported in its Q3/2023 financial statements, released on October 30, 2023, has witnessed a significant uptick in its oil production, a testament to the company’s commitment to excellence in the energy sector. In this report, we will delve into the specifics of Seplat’s impressive performance over the first nine months of 2023 and analyze the factors contributing to its success.
Seplat Energy, a prominent player in the energy industry, has demonstrated its capacity to achieve remarkable milestones. In the first three quarters of 2023, the company reported an impressive oil production figure of 7.7 million barrels. This marked a substantial increase of 17.9% compared to the same period in 2022 when the production stood at 6.5 million barrels. Such growth is a testament to Seplat’s unwavering commitment to operational excellence and resource optimization.
The key driver behind this surge in production can be attributed to the enhanced availability of the Forcados Oil Terminal. The Forcados Oil Terminal’s improved operational status has played a pivotal role in facilitating exports for most of Seplat’s assets. This is a stark contrast to the situation in the third quarter of 2022 when the terminal faced prolonged unavailability. The consistent availability of this critical infrastructure has significantly bolstered Seplat’s production capabilities.

Within OMLs 4, 38, & 41, the production of liquids under working interest also witnessed substantial growth. It increased by 3.4% to 15,206 barrels per day (bopd) in the first nine months of 2023, compared to 14,710 bopd in the same period in 2022. This steady growth is indicative of Seplat’s effective management of its assets and its ability to navigate challenges effectively.
Despite facing a 44-day downtime for the Trans-Forcados Pipeline (TFP) evacuation route, Seplat managed to maintain production levels by utilizing the AEP pipeline as a reliable alternative. The downtime was primarily due to the time required to repair the Single Point Mooring (SPM) system at the Forcados Oil Terminal. Additionally, delays in delivering new well stock planned for the asset in 2023 also affected production. Seplat’s ability to adapt and manage such challenges showcases its resilience and strategic foresight.
Seplat’s report highlighted substantial growth in OML 40, with working interest production surging by 61.0% to 10,169 bopd in the first nine months of 2023 from 6,316 bopd in the same period in 2022. This remarkable growth can be attributed to several factors, including increased production uptime, improved pipeline availability, and the successful execution of the 2023 wells campaign. These achievements in OML 40 exemplify Seplat’s commitment to maximizing the potential of its assets and optimizing its operations.
However, in the Eastern operations within OML 53, daily working interest production decreased by 36.1% to 1,154 bopd in the first nine months of 2023. These volumes were primarily evacuated to the nearby Waltersmith Refinery from Seplat’s Ohaji operations. The resolution of issues with the Antan-Ebocha delivery line in August allowed Seplat to resume production from their Jisike operations, with expectations of a positive impact on OML 53’s output in the following months. Nevertheless, the unavailability of the Trans Niger Pipeline (TNP) continues to limit production from Ohaji. Seplat is actively seeking solutions for third-party evacuation issues on their Eastern assets, including discussions with the Edo Refinery to establish an alternative evacuation option, with plans to supply about 600 bopd of JV crude from Ohaji to the Edo Refinery.
In addition to its achievements in oil production, Seplat has made significant strides in its midstream gas business. The company reported that the average working interest gas volumes grew by 3.3% to reach 116.5 million standard cubic feet per day (MMscfd), a notable improvement compared to 112.8 MMscfd in the first nine months of 2022. This increase was attributed to improved well performance and the accessibility of condensate evacuation routes. Seplat’s commitment to the gas sector is evident in its results, showcasing its ability to adapt and thrive in diverse energy markets.
Total gas sales for the period amounted to 31.8 billion cubic feet (Bcf) compared to 30.8 Bcf in 9M 2022. These sales contributed 42% of the group’s volumes and accounted for 12% of the total revenue. Seplat’s success in the gas sector is not only a testament to its operational efficiency but also highlights the growing significance of gas in the global energy landscape.
In the latest quarter, Seplat achieved another significant milestone by establishing a new Gas Sales Agreement (GSA) with a bulk gas supplier for a volume of 50 MMscfd. All necessary conditions precedent were met by this new customer, and the company is set to commence gas supply under this agreement in Q4 2023. This strategic move aligns with their plan to optimize the capacity of the Oben gas plant and underscores Seplat’s commitment to expanding its presence in the gas market.
Furthermore, Seplat is actively working to secure third-party gas sources to supply both the Oben and Sapele gas plants. This initiative aims to enhance their operational capacity and strengthen supply chain management. These efforts demonstrate Seplat’s strategic vision and its determination to capitalize on opportunities in the gas sector.
In conclusion, Seplat Energy’s impressive performance in the first nine months of 2023 is a testament to the company’s resilience, operational excellence, and strategic foresight. The significant increase in oil production, along with the growth in its midstream gas business, highlights Seplat’s ability to adapt to changing market dynamics and capitalize on opportunities. As the energy sector continues to evolve, Seplat is well-positioned to play a pivotal role in shaping its future.
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