Seplat Energy Plc, the Nigerian oil and gas producer that acquired ExxonMobil’s onshore and shallow-water assets in a $1.28 billion transaction, has returned 49 previously idle wells to production as part of a turnaround effort and plans to restart another 50 wells this year.
The company stated in its latest audited financial results that the idle well restoration program played a central role in driving offshore growth in 2025.
The restoration campaign added about 48,600 barrels of oil per day in gross production capacity at a total cost of roughly $60 million, highlighting the program’s cost efficiency compared with developing new wells.
Seplat confirmed in its audited statement that it restored 49 idle wells under the 2025 program, which added 48.6 thousand barrels per day of gross production capacity during the year.
The company now plans to expand the initiative. Seplat aims to restore an additional 50 wells through 2026 as it moves into a second phase of the program while recognizing that future gains per well may decline.
Management said it expects production increases per well to reduce as fewer high-impact idle wells remain, noting that the most accessible opportunities have already been addressed even though the program remains economically attractive.
Chief executive Roger Brown described the strategy as part of a wider effort to revitalize assets that had received limited investment under ExxonMobil’s ownership.
Brown said renewed offshore investment has improved operational reliability and unlocked additional capacity, contributing to higher production levels.
The restoration program supported stronger offshore performance in 2025. Seplat reported average daily working interest production of 76,023 barrels of oil equivalent, marking about 9 percent year-on-year growth on a pro-forma basis. The company attributed the increase to the idle well recovery program and improved asset operations, despite planned maintenance and a production outage at the Yoho platform following a fire in the third quarter.
The Yoho platform has remained offline since the incident but is expected to resume production in the second quarter of 2026. Seplat estimates that restoring Yoho will add around 20,000 barrels per day, which, alongside the next phase of the idle well program, should support production during a period of increased capital spending.
The idle well program forms part of a broader financial improvement. Revenue increased 144 percent year-on-year to $2.7 billion in 2025 despite a 12 percent decline in oil prices. Adjusted EBITDA reached $1.27 billion with a 47 percent margin, operating cash flow totaled $1.17 billion, and net debt declined to $673 million, equivalent to 0.5 times net debt-to-EBITDA.
Total group production rose 148 percent to 131,506 barrels of oil equivalent per day, reflecting the first full year of consolidated operations after the MPNU acquisition.
source: businessday.ng
African Energy Council