Seplat Targets Production Growth with Mobil Assets Takeover

Seplat Energy Plc is set to strengthen its position as one of Nigeria’s leading indigenous oil and gas producers following the progress of its planned acquisition of Mobil Producing Nigeria Unlimited (MPNU) assets. The company, which has long pursued the deal as part of its expansion strategy, says the move will significantly boost its output capacity and reinforce its role in driving Nigeria’s energy security and upstream growth.

The acquisition, valued at over $1.2 billion, is one of the most anticipated transactions in Nigeria’s oil and gas sector. It involves Seplat purchasing ExxonMobil’s onshore and shallow water assets in the Niger Delta, a move expected to double the company’s oil production and expand its reserves base.

In a statement on Tuesday, Seplat’s Chief Executive Officer, Mr. Roger Brown, reaffirmed the company’s commitment to completing the acquisition, describing it as a “transformational opportunity” that aligns with Seplat’s long-term growth objectives. He emphasized that once finalized, the transaction would position Seplat as the largest independent energy company in sub-Saharan Africa by production capacity.

“We remain optimistic about the completion of the Mobil assets acquisition. The assets are world-class and will deliver significant value to Seplat and Nigeria. This acquisition will enhance our production output, expand our reserves, and support the nation’s objective of maximizing indigenous participation in the energy sector,” Brown said.

The deal, which has been in regulatory review for over two years, is now reportedly at an advanced stage following renewed engagements between Seplat, the Nigerian National Petroleum Company Limited (NNPCL), and the Federal Government. Industry sources suggest that key regulatory approvals are close to being finalized, paving the way for Seplat to take full operational control of the assets.

The MPNU assets comprise several oil mining leases (OMLs), including OMLs 67, 68, 70, and 104, along with associated infrastructure such as pipelines, platforms, and export terminals. These assets have historically contributed significantly to Nigeria’s oil production and are seen as critical to reversing recent declines in national output.

Analysts believe that once the transaction is completed, Seplat’s daily production could rise from the current average of 50,000 barrels of oil equivalent per day (boepd) to over 120,000 boepd. This increase would not only enhance the company’s profitability but also contribute meaningfully to Nigeria’s goal of raising crude output above 1.6 million barrels per day by the end of the year.

The acquisition also aligns with Nigeria’s broader energy transition plan, as Seplat has expressed commitment to maintaining environmental standards and reducing carbon emissions across its operations. The company plans to deploy advanced technology and best practices to improve operational efficiency and minimize gas flaring.

Speaking on Seplat’s sustainability focus, Brown noted that the company’s investment in gas development will continue alongside oil expansion. “We are not just increasing production; we are investing in the future of cleaner energy. Our gas business remains a vital part of Nigeria’s journey toward energy transition and industrial development,” he added.

Industry experts have described Seplat’s pending acquisition as a major vote of confidence in Nigeria’s upstream sector, particularly at a time when international oil companies are divesting from onshore operations due to security and regulatory concerns. They believe Seplat’s takeover of Mobil’s assets will help retain production capacity and technical expertise within the country.

An oil sector analyst, Mrs. Funke Ogundipe, said the move represents a “strategic reshaping of Nigeria’s upstream landscape,” as it strengthens indigenous ownership and ensures continuity of operations in key oil-producing regions. “Seplat’s takeover will bring stability to these assets and create more local value through employment, infrastructure development, and community engagement,” she said.

The acquisition is also expected to support Nigeria’s push for increased local participation under the Petroleum Industry Act (PIA). With Seplat leading the charge, experts predict that more indigenous firms could pursue similar opportunities, fostering competitiveness and innovation in the sector.

However, some industry observers have urged Seplat to prioritize environmental and social governance (ESG) considerations during the transition process. They emphasized the need to maintain transparency, ensure host community engagement, and address legacy issues related to oil spills and environmental degradation.

Seplat, which is dual-listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), has maintained strong financial performance in recent quarters. Its revenue rose by over 20 percent in the first half of 2025, driven by higher oil prices and steady production. The company has also sustained a robust dividend policy, reflecting investor confidence in its growth trajectory.

Once completed, the Mobil assets acquisition is expected to transform Seplat into a key player capable of competing with mid-sized global oil companies. The transaction will also provide the company with greater access to export infrastructure and diversified revenue streams from both oil and gas operations.

For Nigeria, the successful conclusion of the deal could enhance national oil output, increase foreign exchange earnings, and reaffirm the government’s commitment to fostering a more vibrant and competitive upstream sector.

With all indications pointing toward regulatory clearance soon, Seplat’s acquisition of Mobil Producing Nigeria’s assets could mark one of the most significant milestones in Nigeria’s oil industry in recent years — a move that not only propels Seplat into a new growth phase but also strengthens the country’s drive toward energy independence and economic sustainability.