Nigerian energy company Seplat is stepping up to fill the vacuum left by foreign oil companies exiting Nigeria’s onshore oil sector. With its $1.28 billion acquisition of ExxonMobil’s local assets, Seplat now controls a significant portion of Nigeria’s oil production, managing 11 onshore oil blocks and five gas processing facilities.
This acquisition doubles Seplat’s production capacity, enabling the company to produce over 300,000 barrels per day. Seplat has committed to investing in these previously underutilized assets to boost oil and gas output. The company will collaborate with the Nigerian National Petroleum Corporation (NNPC) to ensure these goals are met.
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The withdrawal of international oil majors like Shell and Eni is attributed to environmental concerns and community conflicts in the Niger Delta. However, Seplat’s local knowledge and established community ties position it uniquely to manage these challenges effectively. Read more about Shell’s exit from Nigeria’s onshore sector.
While Seplat’s efforts have been lauded as a step toward strengthening Nigeria’s energy independence, critics warn of potential risks. Concerns around the aging infrastructure of these assets and global trends towards renewable energy have raised questions about the long-term viability of such investments.
Nevertheless, Seplat’s expansion highlights the growing role of indigenous companies in Nigeria’s energy sector. With the global energy transition underway, this marks an important moment for local players to redefine the country’s energy landscape.
