Oredola Adeola
Seplat Energy has leveraged disciplined cost control and a strong operational framework to raise over $4bn in debt while keeping leverage below 1.5x, secured a reserves upgrade with major oil and gas potential near its export hubs, and sustained a solid balance sheet to drive output growth in line with Nigeria’s 3.0 MMbbl liquids and gas targets.
Roger Brown, Chief Executive Officer, Seplat Energy Plc, and Eleanor Adaralegbe, Chief Financial Officer, Seplat Energy Plc, mentioned this at the 2025 Africa Energy Week (AEW) Conference & Exhibition in Cape Town, South Africa.
The leading Nigerian independent energy company it has unlocked value from divested assets by improving efficiency and safety performance of the assets, whilst driving the entire growth process with a world-class and resilient people (workforce).
Brown, who spoke during a Fireside Chat titled “Assets Acquisition Success Strategies: Seplat Energy”, said the company has successfully integrated major acquisitions in the last decade, each time improving efficiency and safety performance, while at the same time reducing routine emissions.
Speaking on its most recent acquisition of Mobil Producing Nigeria Unlimited assets, he said the goal had been to move quickly to re-engage wells and facilities – resulting in the delivery of immediate results; investing early in integrity and reliability – thus reducing downtime while setting a foundation for future growth; and integrating not isn’t just systems, but people.
“We found strong cultural alignment with our new colleagues, and that’s been key to seamless performance. We’ve welcomed their expertise and insights and the entire Group is benefiting from them,” Brown hinted.
According to the Seplat CEO, by combining Seplat’s onshore experience with decades of offshore know-how from new colleagues, the company have built a stronger operation from day one, which is already delivering higher cash flow.
“The recent reserves upgrade shows we have acquired a high-quality asset with significant production potential in both oil and gas, and much of this is within easy reach, close to export infrastructure that we control.
“We are confident we can increase production and that aligns with the Government’s target to increase liquids production to 3.0 MMbbl, and to increase gas production for both domestic energy and export markets,” he added.
Speaking o the company strong operator mindset, Brown said Seplat Energy focuses on acquiring assets where its operating capability can unlock hidden value – especially mature fields that benefit from a more agile, entrepreneurial operator.
He stressed that, “We’ve already proven we can acquire assets onshore and bring them up to high levels of production, whilst keeping tight control of costs, and this has helped us build up a strong balance sheet, invest in our future and return a healthy dividend stream to investors.”
On the company’s clear appetite for success, the Seplat Energy boss said the focus had always been on safety and operational excellence, which are targeted at maximising production and cash flows that strengthen the business
“We’re a low-cost operator, meaning we can be profitable at good oil prices, and we’ve proven we can survive periods of low prices and prolonged lock-ins.
“We look after our staff, all of whom are very highly qualified, mostly Nigerian, and ensure they are fully aligned with our success, which in turn will bring success for Nigeria’s energy system. We’ve got a deep bench and a strong succession pipeline,” he explained.
Eleanor Adaralegbe, Chief Financial Officer, Seplat Energy Plc, who spoke during a panel discussion titled “Financing Upstream Projects for Domestic Energy Security”, said since inception, the company has continued to blaze the trail with a highly successful capital raising history; of which the company had raised more than $4bn in debt to develop and grow operations whilst continuing to maintain a low leverage threshold of below 1.5x through the cycle.
On the various financing options the company had leveraged since inception, Adaralegbe identified the Initial Public Offer (IPO), Revolving Credit Facility (RCF), Bonds, Advance Payment Facility, as well as other financings like taking over the $110m RBL, which is currently being refinanced (on Eland acquisition of 2019; and putting in place a $320m project financing for ANOH, Seplat’s 50/50 JV with the Nigerian Gas Infrastructure Company (a 100% wholly owned subsidiary of NNPC).
Speaking on financing challenges and what Seplat Energy had done to overcome them, she said, “Corporates are always looking to access low-cost financing for development and growth, more so, Nigerian energy companies, as Nigerian banks have a high USD cost of borrowing.
“As such, we knew that we had to become a first mover and shape our credit profile to appeal to a wider group of banks and investors. We are the first and only dual listed Nigerian oil and gas company.”
On the company’s key credit highlights, the Seplat Energy CFO listed: Balanced Assets with Substantial Production; Portfolio Diversification Through Gas Business; Uniquely Positioned to Capture Future Growth; Strong Financials and Well-Tested Risk Management; Well managed liquidity; Focus on tax efficiencies; Experienced Management and Strong Governance; and Leading Indigenous and ESG-Focused Operator.
“Seplat Energy has repeatedly been able to refinance to extend maturities and bring down our cost of debt while keeping leverage moderate. We have been able to do this because we are focused on things that lenders are focused on – asset diversification, steady production, strong financials, low leverage, focus on tax efficiencies, strong leadership,” Adaralegbe explained.
On the importance of financing, she said Nigeria’s energy security depended heavily on upstream oil and gas, which fuels both domestic consumption and foreign exchange earnings; declining investment in upstream projects due to global energy transition pressures and perceived risks; and rising domestic demand for gas and power requires urgent expansion of upstream activity, particularly gas exploration and production.
“Until utility-scale renewables, storage, and transmission are materially larger, Nigeria’s ability to keep lights on, vehicles moving, industries running, and households cooking cleanly is fundamentally constrained by upstream oil and gas development, output and associated midstream delivery – that is upstream development is a direct lever on national energy security,” she advised.
According to Adaralegbe, a stable and predictable fiscal framework is the single most powerful enabler of upstream financing; of which consistent application of PIA provisions, timely JV cash-call settlements, and clarity on commodity pricing policies are essential to de-risk projects and crowd in long-term capital.
